DoE to seek SC guidance on retail competition

January 8, 2018

http://bworldonline.com/koi-story-priceless-japanese-fish-make-splash/

THE Department of Energy (DoE) will ask the Supreme Court  (SC) for guidance after the issuance of a new department circular that seeks to restart the stalled rules calling for greater competition in retail electricity sales.

“We are going to petition, make a manifestation before the court that there are two circulars that [Energy Secretary Alfonso G. Cusi] has signed and what will the effect be if it will be rendered moot already on the side of the DoE,” said Energy Undersecretary Felix William B. Fuentebella.

He said the department had been talking to the Office of the Solicitor General on the matter to “clarify” the DoE’s representation before the high court or whether the agency will handle the petition on its own.

However, the Energy Regulatory Commission (ERC) is set to wait it out until the Supreme Court decides whether to lift the temporary restraining order (TRO) on provisions on retail competition and open access (RCOA).

Philippine Electricity Market Corp. (PEMC), the governance arm of the country’s wholesale electricity spot market (WESM), is likely to wait for lifting of the TRO.

Towards the end of last year, the DoE signed a new circular that will reverse contentious provisions of a previous circular as well as resolutions from the ERC requiring contestable customers — or those whose electricity consumption for the past 12 months has reached the thresholds set by the regulator — to move away from being part of the captive market of a distribution utility.

The switch to a licensed retail electricity supplier is meant to allow greater participation from new players, thus spurring competition and lowering power costs. RCOA is called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), the law that restructured the power sector, as well as its implementing rules and regulation.

The new circular will also allow the ERC to continue issuing licenses to retail electricity suppliers, which was among the provisions placed on TRO as sought by a number of educational institutions and a business group. The TRO was issued by the high court in February.

ERC Chairperson Agnes T. Devanadera said there is indeed a conflict between the DoE’s two circulars, specifically the mandatory provision in the old rules, which the new one set aside in favor of voluntary compliance.

“It’s a fact that they have issued a circular but the Supreme Court (SC) case is also a fact so do I have a say there? None. SC does),” she said, adding that the subject circular is already with the court.

“So all matters, whether direct or allied matters, we will defer to the SC. We are represented by the solicitor general,” she said.

Francis Saturnino C. Juan, PEMC spokesperson, said the electricity market operator remains uncertain about what is required of it under the new circular.

“While we have already the DoE circular, when we were discussing the circulars, we would need additional guidance and clarifications if we are expected already to implement at least in terms of the customer switching as the CRB (central registration body),” he said.

Mr. Juan said PEMC is dependent on the ERC as far as determining which customers fall under the contestable market.

“Even if we want to implement RCOA, the switching, who will be the contestable customers? We can’t for sure determine that ourselves,” he said. — Victor V. Saulon