ERC urged to defer open-access scheme

Industry stakeholders and the Department of Energy (DoE) have urged the Energy Regulatory Commission (ERC) to defer the start of the open-access regime as the necessary policy framework, systems and infrastructure have yet to be established.

In a joint letter to the Energy Regulatory Commission, power distributor Manila Electric Co. (Meralco), the Private Electric Power Operators Association (Pepoa) and the Philippine Rural Electric Cooperatives Association Inc. (Philreca) requested the commission to re-evaluate the feasibility of starting open access by December 26 this year as the two most critical systems to ensure the smooth implementation of the scheme have yet to be put in place.

The parties were pertaining to the business-to-business (B2B) system, which will enable the so-called central registration administrator (CRA) to perform its tasks; and the accounting, billing and settlement (ABS) system, which will be used for the retail transactions.

“Our concern stems from the fact that the remaining time between now and Dec. 26, 2011, will be grossly inadequate for the completion of both the policy framework as well as the establishment of the necessary systems, infrastructure and individual set up at each electricity service provider,” they stated in the letter, a copy of which was obtained by the Inquirer.

The groups said they expected that the regulations, protocols and standards for the ABS system could be promulgated by the end of 2011. This would then be followed by the procurement, design, deployment and testing of information systems and accompanying infrastructure. This next stage could take approximately 12 to 15 months, they said.

Meanwhile, the B2B system, together with some of the remaining matters for resolution, could be started and be substantially accomplished during the completion of preparations concerning the ABS policy framework and systems. It is critically important that both systems are in place by the start of the open access, they stressed.

Even the DoE, in a separate submission of comments to the ERC, has sought the deferment of the open access regime, given the lack of time to promulgate the rules and to procure, design, deploy, test and commission these needed systems.

According to the DoE’s steering committee, other concerns that needed to be cleared included the issue of whether a distribution utility has the right to refuse to become a retail electricity supplier; installation of metering facility; designation of the so-called “supplier of last resort” for contestable customers that will fail to find a willing supplier; whether the state-run Power Sector Assets and Liabilities Management Corp. will be exempted from the requirement of getting an RES license in order to service its existing supply contracts even under the open access regime, among others.

Energy Secretary Jose Rene D. Almendras earlier claimed that the government would be hard-pressed to put all the necessary rules, systems, mechanisms and infrastructures in place by year’s end.