Expanded retail electricity competition readied | Inquirer Business
Close  

Expanded retail electricity competition readied

/ 05:12 AM October 08, 2020

The Energy Regulatory Commission (ERC) is looking at implementing retail competition and open access (RCOA) at the level of individual small and medium enterprises or groups of households as early as February 2021, meaning customers can buy electricity from suppliers other than the incumbent distributor in their area.

The ERC has called for comments from all interested parties about a draft resolution laying down a proposed timeline for the start of RCOA among consumers that represent less than 750 kilowatts. These will be accepted until Oct. 12

ADVERTISEMENT

Presently, RCOA is in being practiced in the Luzon and Visayas grids—mandated for consumers or groups of consumers that represent power demand of at least 1 megawatt and voluntary for consumers with at least 750 kW but less than 1 MW.

In its draft resolution, RCOA is to be implemented for consumers that need 500 kW but less than 750 kW starting Feb. 26, 2021.

FEATURED STORIES

Also, the scheme is proposed to take effect for consumers who need at least 100 kW but less than 500 kW on Jan. 26, 2022.

Further, the proposed resolution sets the start of RCOA for consumers who need at least 10 kW but less than 100 kW on Jan. 26, 2023.

In the franchise areas of Manila Electric Co., which accounts for three-quarters of power demand in Luzon, the typical residential custo­mer consumes about 200 kilowatt-hours a month.

According to Meralco, a demand threshold of 10 kW would comprise about 10 to 20 such households.

“The benefits of the RCOA scheme will soon come to fruition despite the temporary setback that came up against its implementation,” ERC Chair Agnes Devanadera said in a statement.

The requirement for customers with demand of at least 750 kW but less than 1 MW to exercise the RCOA scheme is being contested at the Supreme Court.

“The envisioned competition in the retail level of the supply sector will soon be a reality and the consuming public will be the beneficiaries of the RCOA as they can opt to choose the electricity provider that offers the most competitive price,” Devanadera said.

ADVERTISEMENT

Subscribe to Inquirer Business Newsletter
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: electricity, Energy Regulatory Commission (ERC), retail competition
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.