ERC amends 2006 OATS rules

BY LENIE LECTURA – JUNE 2, 2022
from Business Mirror

The Energy Regulatory Commission (ERC) has amended the Open Access Transmission Service (OATS) rules to synchronize with the commission’s existing rules.

ERC Chairperson and CEO Agnes VST Devanadera said the 2006 OATS rules need to be revised to integrate more recent regulatory policies and, at the same time, to address concerns raised by electric power industry stakeholders.  “The Commission deemed it appropriate to amend the 2006 OATS Rules to harmonize it with relevant rules and guidelines that we have promulgated.

The amended OATS Rules will also clarify concerns from the various transmission customers, the Department of Energy (DOE), and the National Grid Corporation of the Philippines (NGCP), particularly on the computation of Transmission Charges.  In addition, we have also set the Transmission Charges that will be applicable to Embedded Generators (EGs) that are mandated to register with the Wholesale Electricity Spot Market (WESM),” said Devanadera.

The significant provisions of the 2006 OATS rules that were amended include the Billing Determinant; System Impact Studies (SIS); Penalty Provisions; Interruption and Curtailment Billing Adjustment; and Force Majeure Adjustment.

The OATS rules provide that the ERC may choose to initiate amendments.   “The Open Access Transmission Service (OATS) rules 2022 Edition seeks to ensure a more transparent Electricity Market, along with the provision of safe, reliable, and efficient operation of the Power System,” Devanadera stressed.

The rules, terms and conditions for the provision of OATS rules spells out the services provided by the Transmission Network Provider that operates the high voltage backbone transmission system. It outlines the responsibilities of the Transmission Network Provider and the functions of the System Operator as specified in the Philippine Grid Code (PGC) and the Wholesale Electricity Spot Market (WESM) Rules.

The OATS Rules also set out the responsibilities accepted by Transmission Customers as a condition for receiving the services.

Further, the ERC said the OATS rules are grounded on the Implementing Rules and Regulation of Republic Act 9136 or the Electric Power Industry Reform Act, the PGC and the WESM Rules. The OATS Rules complement the Rules for Setting Transmission Wheeling Rate and the WESM Manuals.