DOE: Contestable consumers under RCOA up 227%

BY LORENZ S. MARASIGAN – JULY 8, 2021
from Business Mirror

The Department of Energy (DOE) noted a “significant increase” in the number of contestable consumers eligible to choose their own suppliers under the Retail Competition and Open Access (RCOA).

During the 2021 Energy Investments Information, Education, and Communication Forum on Thursday, Energy Assistant Secretary Redentor E. Delola said the number of contestable customers has increased by 227 percent since it was first implemented in 2013.

“From only 892 in 2013, now as of May 2021, we have a total of 2,920 electricity end-users that have been issued with certificate of contestability by the ERC (Energy Regulatory Commission) or an increase of 227 percent,” he said.

Meanwhile, suppliers increased from 31 to 72 in the same period.

“While participation in RCOA remains voluntary to the contestable customers, as of May 2021, the participation to RCOA has been encouraging as out of the 2,920 electricity end-users certified by the ERC as contestable, 1,791 or more than 60 percent are already being served by suppliers as evidenced by the registration,” he said.

RCOA is currently being implemented under its third phase wherein end-users with an average monthly peak demand of at least 500 kilowatts (kW) for the preceding 12 months are allowed to select their power suppliers.

“To further the implementation of RCOA, we shall be pursuing retail aggregation in consultation with the ERC and the market operator, primarily on ensuring efficient aggregation arrangements,” Delola said.

Next year, the ERC plans to introduce Phase 4 of the RCOA, which further lowers the threshold to 100kW to 499kW. By 2023, Phase 5 of the RCOA will cut the threshold to 10kW.

The expansion of the RCOA is expected to generate a more competitive market, providing more affordable energy to consumers.

The energy department also plans to introduce RCOA in Mindanao.

“With the expected commercial operation of WESM in Mindanao in the next quarter, we shall develop and promulgate RCOA policies for the grid, mainly when it will commercially operate as rules and guidelines are already in place,” Delola said.

He noted that the DOE has been receiving feedback and queries from customers in Mindanao interested in participating in RCOA.

“Thus, the need to fast-track its implementation,” he said.