ERC paves the way for electricity providers in declared unviable areas
The Energy Regulatory Commission (ERC) announces to hold public consultations for its draft guidelines in the regulation and grant of permits or licenses to Qualified Third Parties (QTPs) performing missionary electrification in declared unviable areas. These QTPs are alternative electric service providers in areas declared by the Department of Energy (DOE) to be unviable and electric service is not currently provided in an efficient and sustainable manner by the distribution utility (DU) which has franchise right over the said areas.
The draft guidelines provide that the franchise of the DU is not transferred but only the right to service such area is deemed assumed by the QTP. Along this line, a QTP, as contained in the list of requirements for its business qualification and approval, is required to secure a waiver from the franchised DU and a service contract with the Small Power Utilities Group of National Power Corporation (NPC-SPUG). The ERC, upon finding the petition of QTP sufficient in form and in substance, will issue an Order approving the QTP Service Contract. The issuance of said order will constitute a license to the concerned QTP to generate and distribute electricity.
“Pursuant to the Electric Power Industry Reform Act (EPIRA), the provision of electric service in declared unviable areas that DUs are unable to provide will be opened to QTPs and are subject to regulation by the ERC,” ERC Chairman Rodolfo B. Albano, Jr. said.
“It is the commitment of our government to light the countryside, thus, the pertained draft guidelines aims to ensure and accelerate the total electrification of the country which is also part of President Gloria Macapagal Arroyo’s 10-point agenda,” Chairman Albano added.
The draft Guidelines is accessible in the ERC website at www.erc.gov.ph.
The public consultations will be held on the following dates and venues:
January 30, 2006 - one o’clock in the afternoon (1:00P.M.), SOCOTECO II Compound, Jose Catolico Ave., Lagao, General Santos City
February 9, 2006 – 1:00P.M., ILECO II Compound, Barangay Canayan Pototan, Iloilo
February 27, 2006 – 1:00P.M., PALECO Compound, Tiniguiban, Puerto Princesa, Palawan
March 3, 2006 – 1:00P.M., ERC Hearing Room, Pacific Center Building, San Miguel Ave., Ortigas Center, Pasig City.
January 23, 2006