SMALL ELECTRICITY end-users will be able to choose their preferred power supplier soon as the Energy Regulatory Commission (ERC) is now looking to lower the threshold.
In a draft resolution, the ERC is looking to lower the eligibility threshold for the government’s Retail Competition and Open Access (RCOA) program to an average monthly peak demand of at least 100 kilowatts (kW).
The regulator said that the initiative is expected to encourage “a more dynamic and competitive retail electricity market, enabling a broader range of consumers to benefit from competitive pricing, improved service quality, and supply options.”
Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 mandates the ERC to promote competition, encourage market development, and ensure greater consumer choice in the electric power industry.
At present, qualified consumers with an average peak demand of at least 500 kW for the preceding 12 months are given a choice to contract with a preferred retail electricity supplier under RCOA.
As of May, a total of 2,225 retail customers, or 60% of the eligible customers, have switched to RCOA.
Approximately 12,154 end-users from Luzon, Visayas, and Mindanao are already meeting the minimum 100-kW eligibility threshold, the ERC said.
“The Commission finds it necessary to align the eligibility thresholds across all Customer Choice Programs to ensure consistency and regulatory coherence,” it said.
The customer choice programs in the retail market include the RCOA, the Green Energy Option Program (GEOP), and the Retail Aggregation Program.
The proposed 100-kW threshold for RCOA is aligned with the level currently implemented under the GEOP, or the program that allows eligible consumers to choose renewable energy as their power source from licensed suppliers.
The ERC said, however, that some stakeholders raised concerns on infrastructure readiness and market impact, particularly the availability of metering equipment and the capacity of retail metering service providers to deploy meters at scale.
They also stressed the importance of the timely deployment of the Advanced Metering Infrastructure in enabling the transition of smaller end-users to various customer choice programs.
Concerns also include the potential impact of stranded capacity arising from long-term supply contracts held by distribution utilities to the remaining captive customers.
“The Commission continues to engage in policy dialogue with affected industry players, to develop responsive implementation strategies,” the agency said.
The ERC is inviting interested parties to submit their comments on the proposed resolution on or before Aug. 30. A series of public consultations will be held in September. — Sheldeen Joy Talavera