Registration with the operator of the Wholesale Electricity Spot Market (WESM) will no longer be mandated if retail competition and open access (RCOA) will already reach the level of household consumers, according to the Independent Electricity Market Operator of the Philippines (IEMOP).
“In anticipation of the reduction in threshold level for retail power customers up to the household level, we proposed rules change to the DOE (Department of Energy), that registration will no longer be a requirement,” the WESM operator said.
IEMOP, nevertheless, noted that there might enhancements needed in the market systems – especially in metering as well as the process of customer switching from one supplier to another.
“We’ll work on the timelines together with the ERC (Energy Regulatory Commission), but we’re also discussing with DOE and the ERC on how to make the transition to household level implementation more cost-effective,” the company said.
Consumers procuring their electricity service via RCOA vouch that they have been cornering cheaper electricity rates in their contracts; and they are also demanding better quality service from suppliers.
As laid down by the ERC, retail competition and open access (RCOA) policy in the restructured electricity sector shall go down to the level of 749 to 500 kilowatts (kW) by February 2021; 499 to 100 kW by January 2022; and 99 to 10kW by 2023.
Retail competition in the power sector is currently at the level of 750 kW and up; and all customers in that segment are currently required to secure registration with the WESM.
Nevertheless, when RCOA would already get to the household level, it was emphasized that customers exercising their ‘power of choice’ may reach millions, hence, it will be an extremely tricky process to require them to undergo registration with the WESM operator.
The ERC has just recently concluded its solicitation of inputs and comments from relevant industry stakeholders on the accelerated lowering of RCOA thresholds – primarily on the new timelines of implementations of power retailing that will go down to the level of the residential consumers.
ERC Chairperson Agnes T. Devanadera said “the benefits of the RCOA scheme will soon come to fruition despite the temporary setback that came up against its implementation.”
She was referring to the legal cases filed against the ERC rules on RCOA that had snagged the implementation of the policy for some time.
Devanadera emphasized “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 their electricity provider that offers the most competitive price.”
The ERC specified that the end-users who will meet the threshold level “shall be allowed to contract with any licensed/authorized suppliers of electricity on a voluntary basis.” The RCOA edict will empower consumers to choose their own electricity suppliers at a cost that will fit their budgets and on the package of service that they will prefer.