Petition
for Interim Open Access Luzon Visayas GridERC acts with dispatch on Petition for Interim Open Access
The
Energy Regulatory Commission (ERC) immediately acted on the petition of power
providers to implement an interim Open Access in the Luzon and Visayas grids.
In its Order dated 26 May 2008, the ERC scheduled the petition for jurisdictional
hearings, expository presentations, pre-trial conferences and evidentiary hearings,
as shown in the table below:
LUZON
GRID |
|||
Date |
Time |
Venue |
Particulars |
16
June 2008 (Monday) |
2:00 P.M. | ERC
Hearing Room at the Pacific Center Bldg., San Miguel Ave., rtigas Center,
Pasig City |
Jurisdictional
hearing and pre-trial conference |
17,
23, 24 & 25 June 2008 (Tuesday, Monday, Tuesday and Wednesday) |
2:00 P.M. | ERC
Hearing Room at the Pacific Center Bldg., San Miguel Ave., Ortigas Center,
Pasig City |
Evidentiary
hearing (Reception of evidence and presentation of witnesses) |
17-18
July 2008 (Thursday and Friday) |
9:00 A.M. | ERC
Hearing Room at the Pacific Center Bldg., San Miguel Ave., Ortigas Center,
Pasig City |
ERC
Hearing Room at the Pacific Center Bldg., San Miguel Ave., Ortigas Center,
Pasig City |
VISAYAS
GRID
|
|||
03
July 2008 (Thursday) |
9:00 A.M. | ERC
Visayas Field Office, Ground Floor, Machay Bldg., Gorordo Ave., Cebu City |
Jurisdictional
hearing and pre-trial conference |
04
July 2008 (Friday) |
2:00 P.M. | ERC
Visayas Field Office, Ground Floor, Machay Bldg., Gorordo Ave., Cebu City |
Evidentiary
hearing (Reception of evidence and presentation of witnesses) |
22-23
July 2008 (Tuesday and Wednesday) |
2:00 P.M. | ERC
Visayas Field Office, Ground Floor, Machay Bldg., Gorordo Ave., Cebu City |
Evidentiary
hearing (continuation of presentation of witnesses, if necessary) |
“The ERC welcomes the initiative of the power providers to make electricity rates competitive and give electricity consumers the power to choose their source of power,” ERC Chairman Rodolfo B. Albano, Jr. expressed.
The petitioners include the Philippine Independent Power Producers Association (PIPPA) and seven (7) private distribution utilities (MERLACO, VECO, DALIGHT, Clark Electric, CEPALCO, SFELAPCO & PECO). The petitioners expressed their willingness to voluntarily implement retail competition and open access even before full realization of the pre-conditions.
Section 31 of the Electric Power Industry Reform Act (EPIRA) requires the following conditions to be met before open access can be implemented: (1) establishment of the wholesale electricity spot market (WESM); (2) approval of unbundled transmission and distribution wheeling charges; (3) initial implementation of the cross-subsidy removal scheme; (4) privatization of at least seventy percent (70%) of the total capacity of generating assets of the National Power Corporation (NPC) in Luzon and Visayas; and (5) transfer of the management and control of at least seventy percent (70%) of the total energy output of power plants under contract with the NPC to the IPP Administrators.
In an innovative move, the proposed Interim Open Access will be based on the
Terms of Reference drafted by various stakeholders in the electric power industry
that will allow electricity consumers to choose their source of power from among
the eligible generation companies. Initially, consumers with a monthly average
peak demand of at least one (1) megawatt during the preceding 12 months are
eligible to avail of open access. The threshold level is proposed to be reduced
to seven hundred fifty kilowatts (750 kW) six (6) months after the commencement
of the Interim Open Access.
“The ERC pledges to the electric power industry stakeholders that it will
continue to ensure and promote competition, encourage market development and
customer choice and discourage abuse of market power. It will strive to lead
the electricity consumers towards a brighter future,” Chairman Albano
said.
Petition
for Interim Open Access Luzon Visayas Grid
Order,
ERC Case No. 2008-026RC PECO
Order,
ERC Case No. 2008-026RC
Notice
of Public Hearing, ERC Case No. 2008-026RC
June 4, 2008