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[ ERC RESOLUTION NO. 05, S. 2013, March 22, 2013 ]

A RESOLUTION ON DISCLOSURES OF CAPACITY AND ENERGY ALLOCATIONS BY DISTRIBUTION UTILITIES IN THE LUZON AND VISAYAS GRIDS AND RETAIL ELECTRICITY SUPPLIERS



WHEREAS, pursuant to Sections 43 (k) of Republic Act 9136, otherwise known as the Electric Power Industry Act (EPIRA), mandates the Energy Regulatory Commission (ERC) to monitor and take measures to penalize abuse of market power, cartelization and anti-competitive or discriminatory behavior by any electric power industry participant;

WHEREAS, on June 7, 2006, the ERC promulgated the “Code of Conduct for Competitive Retail Market Participants” to promote consumer confidence in the retail electricity industry and to protect consumers against discriminatory acts of other electricity stakeholders;

WHEREAS, the Code of Conduct for Competitive Retail Market Participants prescribes the responsibilities and conduct of retail market participants in a competitive environment;

WHEREAS, on December 17, 2012, the ERC promulgated the “Transitory Rules for the Initial Implementation of Open Access and Retail Competition (OARC)” to provide the additional regulatory framework in the commercial operations of retail competition including the initial transactions to ensure the effective implementation of the competitive retail electricity market;

WHEREAS, from December 2012 to January 2013, the ERC noted several issues and concerns raised by contestable customers (CCs) regarding OARC, foremost of which is the inaction of several Retail Electricity Suppliers (RES) to their requests for proposals;

WHEREAS, the CCs complained that several RES are not making any offers to them because these RES have already allocated their capacities and energy volumes to either their affiliate companies or other target customers;

WHEREAS, these acts are prejudicial to the CCs as they may end up being served by Suppliers of Last Resort (SOLR) for failing to find a willing RES due to circumstances beyond their control;

WHEREAS, in the interest of transparency, the ERC finds the need to require compulsory disclosures of Distribution Utilities (DUs) and RES of their capacity and energy allocations;

WHEREAS, on February 20, 2013, the ERC posted on the two ERCadministered websites, the draft “Resolution on Disclosures of Capacity Allocations for Distribution Utilities and Retail Electricity Suppliers” to solicit comments from the industry stakeholders;

WHEREAS, on March 7, 2013, a public consultation was conducted by the ERC to discuss the comments submitted by the concerned stakeholders;

WHEREAS, to determine that there is enough supply for the demand of the CC and that no participant demonstrates any anti-competitive behavior, the ERC deems it appropriate to finalize this Resolution;

NOW THEREFORE, the ERC, after a thorough and due deliberation, hereby RESOLVES to DIRECT all Distribution Utilities (DUs) in the Luzon and Visayas grids and the licensed Retail Electricity Suppliers (RES) to comply with the following disclosure requirements in the form of affidavits hereto attached as “Form No. CMD-CapAlloc-01” and “Form No. CMD-CapAlloc-02” and made integral parts of this Resolution:

  1. All DUs in the Luzon and Visayas grids shall submit to the ERC of data pertaining to the amount of capacity and energy (in MW and MWH) that they have contracted with the generators as well as the capacity and energy that they are intending to allocate for their captive market, their supply business segment as Local Retail Electricity Supplier (LRES) or otherwise, and their SOLR business segment, if any;
  2. All RES shall submit to the ERC of the amount of capacity and energy (in MW and MWH) that they have contracted with the generators, the number of their contestable customers and the capacity and energy that they have allocated for the latter, and their available capacity and energy (in MW and MWH);
  3. The deadline for the initial submissions shall not be later than fifteen (15) days upon the effectivity of this Resolution; and
  4. The above requirements shall be updated and submitted to the ERC every subsequent three (3) months, without need of further notice.

Failure to submit accurate information and comply with the above requirements shall be subject to the appropriate ERC fines and penalties.

This Resolution shall take effect immediately upon its publication in a newspaper of general circulation in the Philippines.

Let copies of this Resolution be furnished the University of the Philippines Law Center - Office of the National Administrative Register (UPLC-ONAR), all the licensed Retail Electricity Suppliers, all Distribution Utilities and all the other parties concerned.

(SGD.) ZENAIDA G. CRUZ-DUCUT
Chairperson
   
MARIA TERESA A.R. CASTAÑEDA (On leave)
Commissioner
(SGD.) JOSE C. REYES
Commissioner
   
(SGD.) ALFREDO J. NON
Commissioner
(SGD.) GLORIA VICTORIA C. YAP-TARUC
Commissioner
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