ERC Seeks Comments on the Revised OATS Rules

The Energy Regulatory Commission (ERC) seeks the public’s comments on the third (3rd) draft of the Revised Rules, Terms and Conditions for the Open Access Transmission Service (OATS) Rules proposed by the National Transmission Corporation (TRANSCO). The draft revised OATS Rules can be downloaded at the ERC’s website at www.erc.gov.ph, Comments thereon may be submitted through mail (postal or electronic) on or before 29 October 2006 (Sunday).

“The revised OATS Rules are significant guiding principles in a restructured electric environment as it spells out the responsibilities of the Transmission Provider; the functions of the System Operator; and the responsibilities that should be accepted by Transmission Customers as a condition for receiving the services,” ERC Commissioner and Officer-In-Charge Maria Teresa A. R. Castañeda said.

TRANSCO proposed to revise the previously approved OATS Rules to include, among others, the methodology on how the Transmission Provider will recover the cost for providing Regulated Transmission Services, Excluded Services from the Maximum Annual Revenue (MAR), and Other Charges, and to synchronize such with the ERC’s latest policies pertaining to the Connection Asset Definition and End-User Connection. The revised OATS Rules already contained comments and suggestions from the industry participants and from the ERC, but excluded sections on Contestability of Connection Assets, Loss Factor, and Cost Recovery Mechanism for the Ancillary Services.

“The ERC invites the public to submit their comments, concerns, and suggestions on the proposed Revised OATS Rules to assist the ERC in coming up with a set of rules to ensure healthy competition and level playing field in the emerging restructured electricity industry,” Officer-In-Charge Castañeda added.

October 17, 2006

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