|
Monday, July 14, 2008
Energy body allows interim open access in Luzon
MANILA -- The Energy Regulatory Commission (ERC) issued Sunday a provisional authority (PA) for the implementation of interim open access in the Luzon grid.
This came as a response to President Gloria Macapagal-Arroyo's order to provide cheap electricity rates to consumers in different regions in Luzon.
Arroyo Watch: Sun.Star blog on President Arroyo
In a resolution signed by retired ERC chairman Rodolfo Albano Jr., the commission is convinced there are still some unresolved issues that needed to be settled before fully allowing the implementation of an open access.
"It is foreseen that despite the voluntary nature of the scheme, the players need sufficient time to prepare for the actual implementation," the commission said.
Technical issues
ERC has also identified several technical issues that might muddle the implementation of the scheme.
This (scheme) requires cooperation of all the participants and even other industry players, Albano said.
Under the rules, all retail electricity suppliers (RES) duly licensed by the commission will be allowed to market their supply business.
The sourcing of supply, however, should be limited to privatize assets and may include the Independent Power Producers (IPP) contracts.
The Manila Electric Company (Meralco) shall be allowed to put up the necessary metering facilities as provided under the Rules for Contestability.
Last May 23, petitioners such as the Philippine Independent Power Producers Association (Pippa) together with distribution utilities headed by Meralco, CEDC, Davalo Light and Power Corp., Cepalco, Sfelapco and Peco lodged the petition before the ERC to allow the interim open access to take place.
The petitioners wanted the interim open access to be implemented in the Luzon and Visayas grids.
Hearings are already conducted in the Visayas and Luzon.
In their petition, customers who are eligible for interim open access are "end-users with average peak demand of at least one megawatt (MW) for the preceding 12 months. Participation is said to be voluntary for eligible customers.
The generating companies privatized by the National Power Corporation (Napocor) will be allowed to voluntarily sell or contract directly with eligible contestable customers, the ERC said.
Eligible generating companies must first secure RES license from the ERC.
Lowering power cost
Pippa president Ernesto Pantangco, in an earlier meeting with President Arroyo, proposed for the implementation of the interim open access as a means to bring down the cost of power in the country.
"I highlighted during that time the President said that another way for us to mitigate the high cost of electricity and to give our consumers the power of choice was to accelerate the implementation of open access. And I then urged industry players, particularly private generating companies and distribution utilities to cooperate. And this is exactly what we have done in order to implement an open access now," Pantangco said.
In their proposal for interim open access, customers consuming one megawatt (MW) and above will now have a third option -- which is to contract directly with suppliers beyond the distribution utility and electric cooperatives.
This means, anybody who consumes one MW and above, whether you are in or out an ecozone, can now directly contract with any IPP. (MSN/Sunnex)
For more Philippine news, visit Sun.Star Pampanga. (July 14, 2008 issue)
Write letter to the editor. Click here. |
|
|
|
[return to top]
[home]
|
|
Drivers, operators urged to give discounts