By
Lenie Lectura - January 23, 2017
The Department of
Energy (DOE) is mulling over the possibility of implementing the retail
competition and open access (RCOA) policy on a voluntary basis.
Under the said policy,
which will be enforced in phases, consumers are allowed to choose their
supplier of electricity to encourage competition in the generation and supply
sector.
Under the rules, the
implementation of mandatory migration for contestable customers (CCs) with 1
megawatt (MW) and up average peak demand is on February 26, 2017.
Energy Undersecretary
Felix William Fuentebella said the schedule would push through. “It is pushing
through, because it is mandated. The schedule will push through. What we are
looking at is to make it optional,” Fuentebella said.
He said the DOE,
together with the Energy Regulatory Commission (ERC) is currently evaluating
this.
“We are looking at the
mandatory aspect. How about the contestable customers that were not offered a
RES [retail electricity supplier]? [DOE] Secretary [Alfonso] Cusi wants to
revisit this policy, so there maybe an adjustment,” he added.
Cusi, he said, is open
to enforcing this on a voluntary basis. “He is open [to] making it not
mandatory, [but] only optional so as to strengthen this policy and for
consumers to have more…choices,” Fuentebella said.
Based on existing
rules, an end-user with an average monthly peak demand of at least 1 MW is
mandated to enter into a Retail Supply Contract (RSC) with a RES by its
mandatory contestability date of December 26, 2016.
Mandatory
contestability for CCs with 750 kW to 999 kW average peak demand will, however,
remain to be effective on June 26, 2017.
The rules also state
that the lowering of the threshold to cover an end-user with an average monthly
peak demand of at least 500 kW is set on June 26, 2018, subject to the review
of the performance of the retail market by the ERC.
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