(NAR) VOL. 26 NO. 3/ JULY - SEPTEMBER 2015
(a) | Ensure the quality, reliability, security and affordability of the supply of electric power; |
(b) | Ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market; |
(c) | To enhance the inflow of private capital and broaden the ownership base of the power generation, transmission, and distribution sectors; and |
(d) | Protect; the public interest as it is affected by the rates and services of electric utilities and. other providers of electric power; |
(a) | Upon the initial implementation of open access, the Energy Regulatory Commission (ERC) shall allow all electricity End-users with a monthly average peak demand of at least one (1) megawatt (MW) for the preceding twelve (12) months to be the contestable market; |
(b) | Two (2) years thereafter, the threshold level for the contestable market shall be reduced to 750 kilowatts (kW). At this level, Aggregators shall be allowed to supply electricity to end-users whose aggregate demand within a contiguous area is at least 750 kW; and |
(c) | Subsequently and every year thereafter, the ERC shall evaluate the performance of the market. On the basis of such evaluation, it shall gradually reduce the threshold level until it reaches the household demand level. |
(a) | Supervise the restructuring of the electric power industry; |
(b) | Formulate such rules and regulations as may be necessary, to implement the objectives of the EPlRA; and |
(c) | Exercise such other powers as may be necessary or incidental to attain the objectives of the EPlRA. |
(a) | Any licensed RES; |
(b) | Any Generation Company, currently owning and operating power generation facilities, duly issued a Certificate of Compliance (COC) by the ERC and is offering to serve the power requirements of any CCs: Provided, That it secures a RES license from the ERC; |
(c) | Any Prospective Generation Company. As used in this Circular, a Prospective Generation Company shall refer to any Person or Entity that power generation project is undergoing construction or planned and has been included in the DOE’S Power Development Plan (PDP); |
Any RSC that the CC entered into with a Prospective Generation Company shall be deemed compliant with the Mandatory Contestability prescribed in this Circular; |
(a) | The CC has entered into an RSC with any existing RES; | |
(b) | The CC has entered into an RSC with any Generation Company: Provided, That the RSC shall be effective only upon the Generation Company’s acquisition of a RES’ license from the ERC; | |
(c) | The CC has entered into a Forward RSC with a Prospective Generation Company, with the following conditions: | |
(i) | The effectivity date of the RSC has been clearly spelled out; | |
(ii) | The RSC shall indicate the commitment of the Prospective Generation Company to commence the commercial operations of its power project on or before the effectivity date of the RSC; | |
(iii) | Notwithstanding any RSC signed by a CC with a Prospective Generation Company, the concerned franchised DU shall continue to serve the electricity requirements of the CC until the RSC between the CC and the Prospective Generation Company has become effective; and | |
(iv) | The Prospective Generation Company has secured its RES license from the ERC. | |
Any Prospective Generation Company that fails to comply with the provisions of its Forward RSC with the CC shall be imposed with fines and penalties, and an alternative RES shall be appointed by the ERC to supply the affected CC, which shall be given a six (6) months to secure a new RES. |
(a) | All CCs with an average demand ranging from 750 kW and 999 kW for the preceding 12-month period, are mandated to secure their RSCs with a RES no later than 25 June 2016; | |
(b) | Effective 26 June 2016, Aggregators shall be allowed to compete with RES, Generation Company and Prospective Generation Company; | |
(c) | In the case of retail aggregation, any CCs within a contiguous area may individually or collectively aggregate their electricity supply requirements to an Aggregator, duly licensed by the ERC. The aggregated demand shall in no case be lower than 750 kW. | |
Aggregators, as defined in the EPIRA, refers to a person or entity, engaged in consolidating electric power demand of End-users in the contestable market, for the purpose of purchasing and reselling electricity on a group basis. The Aggregator may secure the same through a Competitive Supply Procurement (CSP) process to be prescribed by the ERC in a separate issuance. | ||
(d) | To ensure timely implementation and continuity of the contestability in the Supply Sector, the ERC shall promulgate the applicable guidelines on retail aggregation. |
(a) | Be renegotiated with the contracted Generation Company. In cases where a DU has multiple contracts with various Generation Companies, the renegotiation of the reduction of capacity and energy volumes shall be done on a pro-rated manner. For those Generation Companies that entered into a RSC with any CCs, as provided under Section 1 of this Circular, the renegotiation or buy-back shall be mandatory; | |
(b) | Be auctioned to other DUs, RES or Aggregators through a CSP process, as defined in a separate issuance by the ERC; or | |
(c) | Be declared in the Wholesale Electricity Spot Market (WESM) as quantity for sell, only in cases where the DU is not a Local RES: Provided, That this shall only be allowed after determination of the ERC and until the expiration of the DU’s bilateral contracts declared as having DCC/E. |
(a) | Immediate lifting of its Moratorium issued on licensing and to include Generation Companies and Prospective Generation Companies among the entities qualified to be RES. | |
(b) | “Future” or “Forward” Contracting of Prospective Generation Company with any CCs shall be allowed and shall be deemed as eligibility to become a RES, subject to compliance with the licensing requirements prescribed by the ERC; | |
(c) | A simplified licensing process for Generation Companies to serve CCs; | |
(d) | Prohibiting over contracting of capacities by RES with Generation Company: Provided however, That Forward RSCs shall not be considered as overcontracting; | |
(e) | Prohibiting Suppliers from engaging in supply of electricity other than with CCs; | |
(f) | Prohibiting RES from exclusive self-retailing or catering only to the RES affiliates and subsidiaries; | |
(g) | Cross-ownership limitations that would allow a competitive level playing field for entities interested to engage in the Supply Business; and | |
(h) | Prohibiting DU to engage in the Supply Business beyond its Captive Customers: Provided, That the existing Local RES alter the effectivity of this Circular may continue to perform its Local RES function until expiration of its RSCs entered into with CCs as of the effectivity of this Circular. |
(a) | Recommend appropriate changes to the WESM Rules, the Retail Market Rules, and Market Manuals; | |
(b) | Develop an Implementation Plan for Section 4(c) of this Circular with utmost consideration to ensuring consumer protection and preserving and enhancing the competitive state of the Wholesale and Retail Markets; and | |
(c) | Propose policy to ensure that developments of the new RCOA policies set forth herein shall redound to benefits for electricity end-users, and facilitate investments in power generation. |