Smart-meters fee exemption sought

Distribution utilities led by Manila Electric Co. and the Private Electric Power Operators Association (Pepoa) have asked the National Telecommunications Commission (NTC) to exclude smart meters to be used for electricity distribution services from certain fees normally imposed on radio frequency emitting devices.

In a joint letter to NTC Commissioner Gamaliel A. Cordoba, Meralco and Pepoa explained that the non-imposition of registration fees and the so-called spectrum user fees for the smart meters to be used by electric utilities in providing electric service to their customers will lower the associated costs of these equipment, which in turn will help keep distribution costs down.

The two parties sent the statement to NTC as distribution utilities are now moving toward new schemes that will make use of the advanced metering infrastructure (AMI) and smart grid infrastructure, namely prepaid electricity and the open access and retail competition.

“We believe that devices to be used for power should be excluded from the fees imposed by the NTC. It should be emphasized that with this, the objective of providing electricity to the consumers at the most efficient and least cost manner, a mandate imposed on all distribution utilities and the Energy Regulatory Commission would have a greater chance to be achieved,” they said.

“At the very least, the non-imposition of fees such as registration fees and spectrum user fees for these wireless devices such as smart meters to be used by electric utilities in providing electric service to its customers will lower the associated costs of these equipment, which in turn will help alleviate the cost of electricity for the benefit of the consumers,” both parties explained in the letter, a copy

of which was obtained by the Inquirer.

Based on the letter, the current memorandum circular of the NTC covered all wireless data networks and devices operating within 2400 MHz to 2483 MHz, 5150 MHz to 5350 MHz and 5470 MHz to 5850 MHz bands.

However, the smart meter to be deployed under the advanced metering infrastructure and smart grid infrastructure will be low power, low latency, and of low bandwidth link operating between a few kilobytes per second.

Meralco and Pepoa further argued that the smart meters and other similar wireless devices will be used by the utilities that are not operating as a public telecommunications entity or offering any public telecommunications service.

“It is respectfully submitted that these smart meters would be in a different category from mobile phone, WLAN cards, Wifi-enabled portable computers, personal digital assistants or other radio frequency emitting devices which are normally set to wirelessly transmit and receive data at long intervals during the day, if not for the whole duration of the day,” the two parties said.

“Further, these smart meters and associated devices would not be used by electric utilities to engage in public telecommunications,” they added.

Meralco and Pepoa stressed that the use of the advance metering infrastructure is an essential ingredient in enabling electric utilities to operate in the most efficient manner while providing the best possible level of customer service.

This technology can also allow the consumers to closely monitor their electricity, providing them with means to better manage their electricity consumption and cost, which today already stands to be one of the highest, on a per kilowatt-hour basis, in Asia.

As further benefit, smart metering would also allow the utilities to project more accurately the energy demands of its consumers so that it can source energy from generators as close as possible to the actual

demand of the consumers at any given time.

This would then help address the country’s need to manage its tight energy supply and increasing demand.