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By Euan Paulo C. Añonuevo, Reporter
THE Energy Regulatory Commission (ERC) has set a
series of hearings in the next two months on a petition seeking to
put in place a temporary scheme aimed at bringing down electricity
rates.
In a decision, the ERC said that it will hold a
number of hearings starting June 16 up to July 23 with regard to a
move for establishment of an interim open access scheme in the
sector.
Under an open-access regime, end-users can bring
down their electricity costs by allowing them to choose their
suppliers.
Delays in the government’s privatization
program however have forced local industries and energy-sector
players to push for an interim arrangement that is still compatible
with the Electric Power Industry Reform Act of 2001 (Epira). So far,
the government has sold 40 percent of its generating capacity.
Industry players said that an interim setup
would help bring down the country’s high power rates, which are
second only to Japan in the region.
Under their proposal, an interim open access
will be implemented once Napocor turns over the recently privatized
Calaca and Masinloc coal-fired plants to their new owners.
Afterward, all generation companies that
acquired Napocor plants will be allowed to “voluntarily sell or
contract directly” with eligible customers with a monthly average
peak demand of one megawatt. This will then be gradually reduced
over time until it reaches the household level.
This would allow qualified power users in
“captive” markets such as in distribution utilities’ franchise
areas to choose a different supplier from those the distributors
tap. Some quarters in the Manila Electric Co. (Meralco) franchise
area have blamed the distributor for the costly electricity, citing
the utility’s purchases from its sister-companies.
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