June 11, 2018 | 10:00 pm
MORE major energy users
signed up to buy power from retail electricity suppliers in the first quarter,
the Energy Regulatory Commission (ERC) said.
The data point to an
increase in the number of contestable customers moving away from the services
of distribution utilities.
As of March, the number
of contestable customers — or those consuming an average of at least 750
kilowatts (kW) for the past 12 months — that forged retail supply contracts
surpassed the 1,000 mark for the first time at 1,024.
The comparative figures
for the number of contracted contestable customers was 766 in March last year
and 997 in February 2018.
Under ERC rules,
contestable customers are required to buy their electricity from retail electricity
suppliers (RES), ending their reliance on distribution utilities. The mandatory
provision of the rules has since been put on hold by the Supreme Court, but the
Department of Energy (DoE) subsequently issued a circular to make the switch
voluntary for contestable customers.
But based on the ERC
figures, the High Court’s temporary restraining order (TRO) has not stopped
contestable customers from forging contracts with retail suppliers.
A total of 902
customers consuming an average of at least 1 megawatts (MW) for the past year
have so far switched to a RES. Of those consuming 750-kW to 999-kW, up to 122
customers have switched.
The ERC said only 310
customers in the 1-MW-and-above category remained with a distribution utility
as of the first quarter, while 331 in the 750-kW-to-999-kW segment retained the
services of a utility. A total of 87 government entities in the contestable
market have yet to switch.
As of the first three
months, the contestable customers have a total power demand of 3,987.23 MW, of
which 65% or 2,598.15 MW are already being supplied by retail electricity
suppliers.
The switch to retail
electricity suppliers is part of rules governing retail competition and open
access (RCOA), which is meant to give consumers whose consumption reached a set
threshold the “power of choice” on where to buy electricity.
RCOA is also meant to
open the power sector to more players, thus creating greater competition and
lowering electricity prices. — Victor V. Saulon
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