ERC eyes final PSOP Rules, seeks stakeholder comments
The Energy Regulatory Commission (ERC) approved on 10 November 2008 and posted on 05 December 2008 the Draft Rules for the Implementation of the Power Supply Option Program (PSOP) on the two (2) websites of the ERC (www.erc.gov.ph and www.buyyourelecticity.com.ph) to gather the final comments of stakeholders in the electric power industry and expedite the approval of the said Rules.
The PSOP was conceived by the ERC as an offshoot of its Decision in the Petition for Interim Open Access (IOA) filed by the Philippine Independent Power Producers Association (PIPPA), Manila Electric Company (MERALCO), Visayan Electric Company (VECO), Davao Light and Power Co., Inc. (DLPC), Clark Electric Distribution Corp., Cagayan Power and Light Co. (CEPALCO), and Panay Electric Company, Inc. (PECO).
In the said Decision, the ERC established the general framework for the PSOP in lieu of the IOA scheme proposed by these industry players. This framework considers the 1MW and up end-users in Luzon as the qualified PSOP Customers and the generation companies that are within the market share limitation in the law and the licensed retail electricity suppliers, as the Eligible Suppliers.
The PSOP gives a new supply option to qualified electricity end-users. The other existing options available in the industry are the Customer Choice Program of MERALCO and the One Day Power Sale (ODPS) of the National Power Corporation (NPC).
The ERC adopted a different nomenclature to avoid a muddled implementation of actual Open Access and Retail Competition and likewise in consideration of the similarities the PSOP has to existing supply schemes and voluntary programs that cater to principally large and industrial customers. The ERC also deemed it fit to rename the program to emphasize that modifications were made on the features of the proposed scheme and to provide an apt description of what it really is.
The implementation of the PSOP within a franchise area will be voluntary on the part of a DU, and, therefore, only particular end-users within the franchise area of the eligible DU will be allowed to participate in the program. The Draft Rules: (a) define the obligations of PSOP participants, (b) lay out policies on the accounting and settlement of energy imbalances, (c) prescribes the method of payment for line rentals and net settlement surplus and (d) set procedures to resolve disputes.
The PSOP will start upon transfer of the operation of
the Calaca Privatized NPC Generation Assets based on the proposal. It automatically
expires upon commencement of actual Open Access and Retail Competition.
Comments to the Draft Rules may be sent via email to contestable@erc.gov.ph
or to the Market Operations Service (MOS) of the ERC located at the 12th Floor,
Pacific Center Building, San Miguel Avenue, Ortigas Center, Pasig City. The
deadline for the submission of comments is on 06 January 2009 (Tuesday).
“The
ERC shares the excitement and interest of industry players and electricity consumers
on programs that promote customer choice and competition. This is another step
forward towards our end goal of full retail competition,” ERC Chairperson
Zenaida G. Cruz-Ducut concluded.
December 10, 2008