ERC drafts new energy retail competition, open access rules

By Alena Mae S. Flores – October 18, 2023, 8:25 pm
from manilastandard.net

The Energy Regulatory Commission plans to issue the Omnibus Retail Competition and Open Access (RCOA) guidelines to clarify the obligation of the retail electricity suppliers (RES).

Under the RCOA pursuant to the Electric Power Industry Reform Act of 2001, consumers that meet a certain threshold of electricity consumption are allowed to choose their electricity suppliers.

The RCOA gradually reduces the energy threshold level of the program until it reaches the household demand level.

“One major set of rules that we are also coming out with are the Omnibus RCOA guidelines, customer choice guidelines. Which means that effectively, we have the Magna Carta for Residential Customers.  So it’s sort of Magna Carta, it reinforces the obligation of the RES when they contract,” ERC chairperson Monalisa Dimalanta said at the sidelines of a recent forum.

Dimalanta said this is an offshoot of the review of the ERC rules following the receipt of numerous complaints from contestable or large consumers against alleged rate adjustments implemented by their RES.

“We want to make the rules very clear because one lesson we learned from the many disputes that arose out of that is that it’s not too clear in their contracts, so we’re making sure that the terms are clear,” she said.

Dimalanta said the guidelines would put into the regulation the value of the RES scorecard, even as she urged the Retail Electricity Suppliers Association to police their ranks.

“We can do a strong hand regulation on this, but the point of RCOA is to deregulate the supply sector, and you have to discipline among yourselves also, among your ranks,” she said.

Dimalanta said the ERC would pursue an aggressive consumer education campaign “to provide clearer terms and guidelines.”

“We’ll issue the draft for public consultation,” Dimalanta said.

The ERC is undertaking a series of hearings on the complaints of large companies against their respective RES.

Several large companies earlier asked the ERC to issue temporary restraining orders and cease and desist orders preventing their RES from disconnecting their supply.

The companies alleged that the RES breached their supply contracts by imposing higher charges beyond what was agreed by the parties.