Philippines: ERC to extend deadline on supply talks

Philippines: ERC to extend deadline on supply talks

With some delays in implementation due to legal hurdles, the Energy
Regulatory Commission (ERC) indicated that it is keen on extending the
deadline for contestable customers to negotiate supply deals with retail
electricity suppliers (RES).

"We believe that an extension would afford concerned parties sufficient time
to negotiate new supply contracts with retailers," ERC Chairman Jose Vicente
B. Salazar noted.

ERC was confident that mandatory retail competition and open access (RCOA)
at lowered threshold of 750 kilowatts will finally make its way into
true-to-form implementation as initially targeted for next year.

This was following the issuance of a temporary restraining order (TRO) by
the Supreme Court effectively reversing for the meantime the injunction
earlier rendered by a Pasig Regional Trial Court on a case filed by the
Manila Electric Company (Meralco) stopping the mandatory phase of the
industry's retail competition.

Salazar reckoned "the issuance of the TRO by the Supreme Court clears the
way for the full implementation by the ERC of its recently-promulgated rules
on RCOA, particularly those that pertain to mandatory contestability by
December, 2016."

Nevertheless, he qualified that some deadlines earlier prescribed in the
Rules may already turn very critical for affected stakeholders to comply
with, hence, they are pushing for review of the timeframes. It will be
calendared as an agenda of the Commission.

"Let me assure the concerned parties that we will review the said timeline
and determine a more appropriate date for mandatory contestability," the ERC
Chair stressed.

He noted they are just counting now on solid support from the industry so
they could finally propel consumers "to be the king of their own power
sourcing" - a long-delayed promise of reform enshrined under the Electric
Power Industry Reform Act.

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Ref: http://www.mb.com.ph/erc-to-extend-deadline-on-supply-talks/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com