ERC sets proposed Rules for Interim Open Access for PubCon
The Energy Regulatory Commission (ERC) has set the public consultation (PubCon)
of the draft Rules for the Implementation of Interim Open Access (IOA) in Luzon
on 04 September 2008 at nine o’clock in the morning (9:00 a.m.)
to five o’clock in the afternoon (5:00 p.m.) at the ERC Hearing
Room, 15 Floor, Pacific Center Bldg., San Miguel Ave., Ortigas Center, Pasig
City.
“The ERC encourages all interested parties, electricity stakeholders, and the general public to participate in the said PubCon to air their views, concerns, and inputs to the said draft Rules,” ERC Chairperson Zenaida G. Cruz-Ducut said.
The proposed Rules on the IOA is without prejudice to the Decision of the ERC in the application filed by the Philippine Independent Power Producers Association (PIPPA), et. al. (ERC Case No. 2008-026) for the approval of IOA in the Luzon and Visayas Grids. The PubCon will merely be an avenue for opening up discussions on the necessary rules to be put in place in the event that the ERC favorably acts on the said petition. The Rules will provide the market and regulatory framework for Interim Open Access to ensure the effective implementation thereof.
The Rules will be effective only for the duration of IOA. Once the ERC declares the establishment of actual Open Access and Retail Competition, IOA and all contracts and transactions related to the IOA will automatically terminate upon Open Access Date. Moreover, IOA can take effect only upon the transfer of the operation of the Calaca and Masinloc Privatized NPC Generation Assets to the private generation companies concerned.
In an IOA regime, there will be a voluntary implementation of Open Access in specific areas prior to the fulfillment of the conditions for Open Access and Retail Competition set by the EPIRA. Only end-users within the franchise areas of eligible DUs will be allowed to participate in IOA.
As competition ensues, the level of efficiency improves and the price of electricity will become competitive to benefit the consuming public because electricity providers will strive for service excellence to keep consumers.
“The ERC is doing its best to lead the electric power industry towards a brighter future by sustaining a regulatory environment that promotes and protects the long-term consumer interests in terms of quality, reliable, and reasonably-priced sustainable supply of electricity,” Chairperson Ducut concluded.
August 28 , 2008