THE Energy Regulatory Commission (ERC) released the Omnibus Rules on Consumer Choice Programs in the Retail Electricity Market.
At present, consumer choice programs in the country consist of the Retail Competition and Open Access (RCOA) and retail aggregation programs under the Electric Power Industry Reform Act (EPIRA), as well as various programs under the Renewable Energy Act, such as the Green Energy Option Program and distributed energy resources.
At present, RCOA allows eligible power consumers whose monthly average peak demand reaches at least 500 kilowatts to choose their own electricity suppliers.
The Omnibus Rules, released by the ERC on Wednesday, establishes a Magna Carta for retail customers, outlining rights of retail customers, such as their right to choose suppliers, access to transparent billing and protection against premature contract terminations.
The Omnibus Rules also expand the implementation of the Retail Aggregation Program allowing the aggregation of demand within the same franchise area.
The rules also permit similarly situated end-users within the same distribution utility franchise area such as facilities having the same owners or being in the same nature of business, to aggregate their demand.
In addition, licensing requirements for Retail Electricity Suppliers (RES) were also strengthened in the Omnibus Rules to ensure their financial viability and competitiveness, mandating a tangible net worth of P15 million for RES.
The new set of rules also introduces a mechanism for determining the standing of a RES, including criteria and parameters for assessing a retail supplier’s compliance and performance metrics.
ERC added customer feedback as a criterion in evaluating the performance of RES for license applications.
Monalisa Dimalanta, ERC chair, said the policy was created after months of extensive public consultations on the proposed rules held in various parts of the country as such program is expected to unlock the power of consumers to select their preferred electricity suppliers.
“The ERC is committed to advancing the goals of the RCOA, which we consider the holy grail of EPIRA. The implementation of RCOA has transformed the Philippine energy sector by empowering consumers with choices and driving investment and competition in the electricity market,” said Dimalanta, in a statement.
“With the issuance of the Omnibus Rules, we contribute to realizing energy democracy and will focus the next few months on an intensified consumer education campaign for an effective exercise of their power to select the supplier that best meets their unique needs,” Dimalanta said.
