ERC moves Power Supply Option Program forward
The Energy Regulatory Commission (ERC) approved on 07 December 2009 the posting of the third draft of the Rules for the Power Supply Option Program (PSOP). The proposed Rules will provide the regulatory framework for the effective implementation of the PSOP that was approved by the ERC in its 10 November 2008 Decision in lieu of the interim open access (IOA) petitioned by the Independent Power Producers (IPPs) and distribution utilities (DUs) in the Luzon and Visayas grids.
This is the third and latest draft of the Rules. The ERC is seeking final comments from the industry participants towards an effective implementation of the PSOP. The deadline for submission of comments is on 15 January 2010.
The Rules, when finalized, willprovide the PSOP to commence ninety (90) days after the completion of the following conditions: (1) the transfer of the operation of the Calaca National Power Corporation (NPC) generation assets to the private generation companies concerned or its equivalent in terms of capacity; or (2) the privatization of at least 70% of the total capacity of generating assets of NPC in the Luzon and Visayas grids, whichever comes first. It provides that the PSOP shall be implemented only in Luzon and shall end once the regime of Retail Competition and Open Access (RCOA) is established. All PSOP contracts and transactions related to it shall thus be terminated once the ERC declares that RCOA is in place.
The PSOP will be the latest addition to the pool of power supply options to customers. Existing programs include the Customer Choice Program (CCP) of MERALCO and the One Day Power Sale (ODPS) of the NPC. The PSOP is a voluntary program that will include only eligible suppliers and eligible customers as defined in the Rules.
“The ERC requests the stakeholders to submit their complete comments at the soonest possible time so that a resolution can be finally enacted by the ERC,” ERC Chairperson Zenaida G. Cruz-Ducut appealed.
December 11, 2009
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