ERC to consult public on Interruptible Load Program Rules
Energy Regulatory Commission (ERC) is promulgating the Rules for the Interruptible Load Program (ILP) of Distribution Utilities (DU) as a proactive measure to help maintain a stable power supply situation in the country. The ILP is a form of demand-side management strategy that aims to bridge the gap between the supply and demand for electricity in power deficit areas in the meantime that the required additional capacities are not yet in place. The program will free up supply quantities that can be used to build up reserves and maintain a secure network while meeting the power demand in a franchise area.
Under the ILP scheme, the DU and the participating customer are allowed to enter into an agreement wherein the customer may be requested by its DU to be fully de-loaded – by disconnecting or partially de-loaded - by a load reduction for a period of time as determined by the DU. The DU shall pay the participating customer a de-loading compensation, an amount representing the incremental cost incurred in the process. The amount paid to the participating customer shall be recovered from all the customers of the DU as part of the total cost of power in the computation of the monthly generation gate.
It must be recalled that the ERC approved on 01 June 2009 an ILP for the Visayan Electric Company (VECO) to sign-up its special wholesale power customers to a load curtailment program that will ease the supply situation in the franchise area of VECO.
The Rules which will be applicable to all DUs nationwide are crafted to provide guidelines and streamline the process of: (1) requesting for de-loading; (2) activation of an ILP; (3) dispatch protocol; (4) documentation; and (5) billing and compensation. The draft Rules will be posted on the ERC website (www.erc.gov.ph) to gather comments from stakeholders of the electric power industry and will be subsequently subjected to an expository hearing followed by public consultations to gather stakeholder inputs that will help expedite the promulgation of the said rules.
“The ERC is seeing the need to implement measures that will manage electricity demand towards stable electricity supply. The ILP is an effective program that will help balance the supply and demand for electricity. It will help eliminate serious supply shortfalls that can adversely affect the socio-economic well-being of affected communities,” ERC chairperson and CEO Zenaida G. Cruz-Ducut said. “The ERC is acting proactively in this passing of the Rules so that a uniform and orderly implementation of the ILP nationwide is achieved. It is hoped that stakeholders of the electric power industry will comment on the draft Rules and actively participate in the public consultations in order to expedite its finalization,” Chair Ducut added.
Rules for the Interruptible Load Program
February 17, 2010