BusinessWorld

The Energy Regulatory Commission has started preparing the Luzon grid for the "interim open access" regime.

A statement issued by former ERC chief Rodolfo B. Albano Jr. during a farewell dinner with reporters last Friday night, a day after he stepped down, said the regulatory body approved two preparatory acts that authorize:

privatized assets of the National Power Corp. (Napocor) and other suppliers accredited by the ERC to sell or contract directly with eligible customers — or those with one-megawatt consumption per month for the preceding 12 months; and
the Manila Electric Company (Meralco) to install metering facilities required for the new regime. "These are just preparatory acts which will eventually make things quicker if the Commission will approve the interim open access [regime]," ERC Director Francis Saturnino C. Juan explained in a phone interview yesterday, confirming the two measures.

Mr. Juan said the commission has yet to rule on a petition for an interim open access regime, since there are technical issues that must be discussed for both Luzon and Visayas grids which he declined to explain. He said ERC has yet to summon the petitioners to address these issues.

Last May, Philippine Independent Power Producers Association, Meralco, Clark Electric Development Corp., Davao Light Power Corp., Cagayan Electric Power and Light Co., San Fernando Electric Light and Power Co. Inc. and Panay Electric Co. filed a petition with the ERC for the implementation of an interim open access in the Luzon and Visayas grids.

Under the interim open access regime, eligible customers will be allowed to choose their power supplier in order to avail of competitive rates.

Full open access will kick in once all five requirements for the scheme, prescribed by the Electric Power Industry Reform Act of 2001, will have been fulfilled, namely: establishment and commercial operation of a wholesale electricity spot market, approval of unbundled charges; removal of cross-subsidies across customer categories; sale of 70% of Napocor’s capacity in Luzon and the Visayas, and the transfer of 70% of Napocor capacity covered by independent power producer (IPP) contracts to eligible private sector IPP administrators.

Only the first three requirements have been met, while the government has sold 48.2% of Napocor assets.

The Power Sector Assets and Liabilities Management Corp. (PSALM) has yet to craft a scheme on how to sell the IPP administration to qualified private sector contractors.

Mr. Juan said the government has no timetable for the implementation of an interim open access regime. "As soon as we finished the hearings and if the petitioners responded timely to the issues, we can decide on it quickly," he said.

Mr. Juan added that implementation of the full open access regime will depend on the out-come of the interim open access. "It doesn’t mean that if PSALM fulfills all the requirements [this year]that there is open access [immediately.] It will still have to undergo consultations and it will take some months before open access can be implemented."

Semiconductors and Electronics Industries in the Philippines Inc.(SEIPI) Pres. Ernesto B. Santiago said in a mobile "text" message yesterday that his group welcomes ERC’s preparations. "We are willing to take any move that would lead to an early implementation of interim open access," Mr. Santiago said.

It is estimated that at least 600 industrial companies, including SEIPI members, will be among the premier beneficiaries of an interim open access regime. — Ava Kashima K. Austria