Philippines to allow for consumer choice versus utilities

Philippines to allow for consumer choice versus utilities

A provision in the Philippines giving medium-scale electricity consumers the
ability to choose between retail electricity suppliers other than the local
utility has had a major boost after a Supreme Court issuance in its favour.

The Retail Competition and Open Access (RCOA) policies, which seek to open
up the power market by giving consumers the freedom of choice, has until now
been held back by some utilities, according to energy secretary Alfonso
Cusi.

However, the Philippines Supreme Court has issued a Temporary Restraining
Order to allow full implementation of the RCOA, halting the attempts of the
major utility Manila Electric Company (Meralco) to stifle the reforms.

Meralco had filed via a petition against the Department of Energy (DOE) and
the Energy Regulatory Commission (ERC), which have both been pushing for the
reforms.

Cusi said: "The Supreme Court saw the need to uphold the role of the DOE -
ERC in giving consumers the power of choice. With RCOA in place,
'Constestable Customers' or those consuming 1MW of electricity [annually]
are now able to choose their power suppliers to reduce their costs.

"In the previous set up, electricity customers were captured by the
distribution utilities within their franchise area and were forced to pay
the contracted supply of their respective distribution utilities."

The threshold for 'Contestible Customers' to have at least 1MW annual
electricity demand is due to be reduced to 750kW two years after the
implementation of the RCOA and the threshold will then be gradually reduced
until even households will have the power to choose.

Pete Maniego, senior policy adviser of the Institute for Climate &
Sustainable Cities and of Counsel of Dime & Eviota Law, recently told PV
Tech in an interview on the Philippines market, that the RCOA policies are
mandated under the Electric Power Industry Reform Act (EPIRA). Incentives
can also be given to companies for installing solar and other renewable
energy systems that will reduce their peak and energy demand. Large energy
users, perticularly commercial solar users, should benefit from the reforms.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Ref:
go.pardot.com/e/83602/nsumer-choice-versus-utilities/66kzkt/189440078

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com