ERC aims to issue advanced metering infra rules this year

BY LENIE LECTURA – MAY 23, 2022
from Business Mirror

The Energy Regulatory Commission (ERC) is targeting to release the rules governing the deployment of advanced metering infrastructure (AMI) within the year.

“It should be this year, but we are also dependent on the funder of the consultancy.  We have started. We should see that in place this year,” said ERC Chairperson Agnes Devanadera.

AMI is an integrated system of smart meters, communication networks and data management systems that enables two-way communication between power distribution utilities (DUs) and customers. The smart meters can handle prepaid and postpaid electricity services. Subscribers with smart meters can manage their electricity usage and budget through consumption information, alerts and notifications. AMI is already being implemented in other countries. The Philippines’s largest DU, Manila Electric Co. (Meralco), is awaiting approval from the ERC to implement its AMI.

Meralco wants to initially deploy two million AMI meters, with an investment cost of P19 billion. This has yet to be approved by the ERC.

“We held on to the processing of AMI because the rules right now require that there should be an approval of the project, but without the costing yet. We, however, think it shouldn’t be that way. It should have approval of the program, factoring in the costing,” Devanadera said.

The ERC has tapped consultants to assist it in crafting the rules. “AMI is advance in other countries but not in the Philippines. So, we decided to get consultants. Right now, we have a partner on this and it’s a subject of a study right now. We have not finalized but we already tapped assistance from international funding agencies.” Meralco’s application has been pending with the ERC for many years now. Devanadera said her office wants to make sure that the cost implication of AMI will not be passed on to consumers.

The ERC had estimated that an average of P0.2309 per kilowatt-hour (kWh) could be added to the customers’ electric bill if the smart meters are shared by all Meralco customers. The rate impact could go higher to P0. 3972 per kWh if charged only to Meralco bulk customers.