ERC eyes full RCOA implementation by 2023
By Jordeene B. Lagare – October 8, 2020
from The Manila Times
THE Energy Regulatory Commission (ERC) is seeking to fully implement the retail competition and open access (RCOA), a scheme that allows electricity end-users to choose their power supplier, by 2023.
“We are requesting all interested parties to submit their comments or inputs on the draft resolution prescribing the new timeline for the implementation of retail competition and open access (RCOA) to ensure that we leave no stone unturned and ensure the seamless implementation of the RCOA,” ERC Chairman and Chief Executive Agnes Devanadera said in a statement.
RCOA is currently implemented in the Luzon and Visayas grids for eligible contestable customers under the Phase I (1 megawatt and above) and Phase II (750 to 999 kilowatts [kW]) on a voluntary basis.
Under the draft rules, the ERC intends to lower of the threshold or the average monthly peak demand to cover end-users.
The lowering of the threshold to cover customers with a monthly average peak demand of 500 to 749 kW (Phase III) shall be implemented effective Feb. 26, 2021.
The threshold will be further reduced to cover end-users with monthly average peak demand of 100 to 499 kW (Phase IV) on Jan. 26, 2022.
The household threshold level (Phase V) covering consumers with a monthly average peak demand of at least 10 kW will then take effect on Jan. 26, 2023.
The RCOA scheme shall apply to grids where the Wholesale Electricity Spot Market is operational.
Under the RCOA environment, the qualified customer will be notified by the network service providers of the former’s option to choose his electric service provider and may switch to his preferred retail electricity supplier.
Meanwhile, the meter service provider authorized by the ERC shall install the meter facilities that will measure the energy use and demand of the qualified contestable customer.
The ERC is soliciting comments from all interested parties to craft the guidelines on the implementation of the RCOA scheme.
All stakeholders have until October 12 to submit their comments or inputs on the proposed resolution.
“The benefits of the RCOA scheme will soon come to fruition despite the temporary setback that came up against its implementation. The envisioned competition in the retail level of the supply sector will soon be a reality and the consuming public will be the beneficiaries of the RCOA as they can opt to choose the electricity provider that offers the most competitive price,” Devanadera said.
