General policies regarding the implementation of retail competition and open access in the power spot market were released yesterday by the Energy department ahead of the scheme’s expected implementation later this year.
Department Circular 2012-05-0005 sets guidelines on how qualified customers can avail of open access regime benefits via the Wholesale Electricity Spot Market (WESM). Open access, as envisioned under the 2001 Electric Power Industry Reform Act, is where end-users that initially consume at least one megawatt per month on average can choose where to source power.
These “contestable consumers” will be deemed WESM trading participants who can deal with suppliers duly licensed by the Energy Regulatory Commission (ERC). They need to be certified at least six months before open access is implemented, and to register with the WESM operator, Philippine Electricity Market Corp. (PEMC), three months before the open access date.
Supply contracts — copies of which need to be submitted to the PEMC, ERC and the Energy department — will initially have a minimum term of one year “following the WESM cycle.”
Switching will only be allowed every six months and only at the end of the billing period, with at least one month’s notice provided to the PEMC.
The Energy department circular also how directly connected customers are to be treated, metering, and suppliers of last resort, among others.
“We wanted to integrate open access with WESM so there is only one market,” Energy Undersecretary Josefina Patricia M. Asirit yesterday said.
The circular was issued as regulators plan to implement open access between August and October this year. It was supposed to be declared last Dec. 26 but was deferred to allow distributors more time to adjust their systems.
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Source: BusinessWorld, May 15, 2012
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