Image via WikipediaThe Energy Regulatory Commission (ERC) en banc has finally reached a decision which provides for the official declaration of open access or the policy regime in the deregulated electric power industry that will give choice to electricity consumers.
A resolution, according to industry stakeholders, was signed on June 6 and such provides for a six-month transition or until December 26, 2011 for the official kick-off of open access.
Even with the formal declaration and the prescription for a transition phase though, the assessment of the industry players is that the ‘power of choice route for consumers’ may not actually gain traction until the next two years.
“The declaration of open access is just the initial step. When that will bear fruit will be a longer process, we still see a delay of two years,” industry sources noted; adding that one next major step would be crafting the rules on settlements for open access-related transactions.
Basically, the policy will give end-users within the 1.0-megawatt peak demand bracket the leverage to contract for or purchase their electricity needs from preferred suppliers.
That regime in the industry will principally open up to competition the industrial and big-ticket commercial segments of the power utility’s customer base or what has been referred to as the “contestable market”. In the case of the Manila Electric Company (Meralco), this will account for about 27 to 30-percent of its customers.
http://mb.com.ph/node/322123/erc-re
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