THE DECLARATION of open access in the power sector — set for Dec. 26 this year — will be moved back to a still to be determined date, an Energy Regulatory Commission (ERC) official yesterday said.
“ERC resolved [on Monday] to defer implementation of open access and retail competition … A new timeline will be set after the ERC receives the recommendations of the steering committee created by the Energy department,” Executive Director Francis Saturnino C. Juan told reporters.
“[T]he IT (information technology) infrastructure has not been put in place,” he said. “Before we are able to do that we have issues to be resolved and between now and December 26 we will not be able to finish”.
Open access is a regime where electricity users who consume one megawatt and up can choose their provider. It is expected to lower prices as power firms compete for customers.
Distribution utilities requested the ERC last month to postpone the declaration of open access because systems to monitor and settle transactions were not yet ready. They also said that relevant rules had not been released.
Under the 2001 Electric Power Industry Reform Act, open access can be declared once 70% of both generating assets and independent power producer administrator contracts. is privatized.
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By: E. N. J. Diaz
Source: Business World, October 26, 2011
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