The Energy Regulatory Commission (ERC) is drafting new guidelines to the omnibus retail competition and open access (RCOA) under which the threshold had been lowered to 100 kilowatt-hours from 500 kwh at the moment.
ERC chief Monalisa Dimalanta said the new guidelines extend to commercial power consumers flexibility in their choice of electricity suppliers.
“We need to provider clearer terms and guidelines. We’ll issue the draft for public consultation,” Dimalanta said.
Under current RCOA provisions, companies have a choice in selecting their energy supplier if they have a monthly consumption of at least 500 kilowatt hours (kWh).
The Supreme Court (SC) in 2021 voided directives by the Department of Energy and the ERC requiring consumers under RCOA to source their electricity from a limited pool of accredited suppliers.
The SC decision effectively allowed RCOA customers to enter into contract with any power supplier, distribution utility and electric cooperative of their choice.
The Senate also required the ERC to conduct a thorough study before adjusting the RCOA threshold to 100 kWh.
“Senator (Sherwin) Gatchalian required us to do the study before we lower the threshold. We need to do the study. He wants a full consultant, an outsourced study of the impact, what safeguards to be put in place,” Dimalanta said.
The RCOA program is expected to lower power costs, further boost competition among electricity suppliers and diminish the control of distribution utilities over where electricity supply is sourced.
