THE Energy Regulatory Commission (ERC) has lowered the threshold for open access, allowing consumers in Mindanao with at least 500 kilowatts (kw) of electricity consumption a month to choose their own supplier by March 26, 2024.
In a recent resolution, the ERC said it expanded the coverage of Retail Competition and Open Access (RCOA) pursuant to its mandate under Section 31 of the Electric Power Industry Reform Act (EPIRA) and Rule 12 of its Implementing Rules and Regulations (IRR).
The new resolution will cover end-users with an average monthly peak demand of at least 500 kw for the preceding 12 months on a voluntary basis. This, the ERC added, is consistent with the prevailing threshold being implemented for RCOA in Luzon and Visayas.
To date, approximately 239 end-users in Mindanao can potentially qualify to participate in RCOA with this threshold. In contrast, only 102 end-users in Mindanao would qualify if the threshold were set at 1MW or higher.
The RCOA framework has evolved since its inception in 2013. This progress in the market, coupled with the forthcoming release of the ERC’s Omnibus Rules for Customer Choice Programs in the Retail Electricity Sector, is anticipated to address various implementation challenges and to ensure a seamless implementation of the consumer’s power of choice in the power sector in Mindanao.
“The Commission views the commencement of RCOA in Mindanao with immense optimism,” said ERC Chairperson Monalisa Dimalanta. “We will continue to support and ensure that customers in Luzon, Visayas and Mindanao will be able to exercise meaningfully their power to choose suppliers as a way to realize reasonable price of electricity.
Over the next few months, the ERC will conduct an aggressive information campaign to capacitate our contestable customers with the ability to effectively transact in the retail market and properly discern the best terms of power supply suited to their needs.”