ERC grants PA on MERALCO-NPC Customer Choice Program

The Energy Regulatory Commission (ERC) on 17 November 2006, granted provisional authority (PA) to Manila Electric Company (MERALCO) and National Power Corporation (NPC) on their joint application for the approval of the Memorandum of Agreement (MOA) to implement a Customer Choice Program (CCP) for large industrial and commercial customers. The CCP provides an option to large industrial and commercial customers with demand of at least 1 MW (megawatt) to avail of the NPC Time-of-Use (TOU) generation rates.

“The ERC is delighted to note that the said CCP will facilitate the privatization of the NPC and eventually address the looming capacity problem. Also with CCP, the large industrial and commercial customers will be encouraged to continue doing business in the Philippines and that potential investors will be attracted to infuse their resources in the country due to reasonable or cheaper cost of power,” ERC Chairman Rodolfo B. Albano, Jr. explained.

Under the CCP, NPC and MERALCO will combine resources in informing qualified customers about the program. A customer can avail of the CCP for a minimum period that coincides with the remaining term of the MOA, unless the parties agree to extend the MOA and the availability of the CCP to such customer. Upon approval of the application of a customer, the implementation of the CCP will commence at the immediately succeeding customer’s billing period.

“The CCP is a concrete example of the cooperation between the government and private sector towards the creation of a vibrant economy. This is part of the concerted thrust toward deregulation leading to reasonable or cheaper cost of power to commercial and large industries. This relief to industrial and commercial customers of MERALCO will ward off their closure or relocation to other countries and will, therefore, avert negative impact on the national economy,” Chairman Albano remarked.

November 29, 2006