The Manila Times

DoE to uphold consumers’ freedom of choice

- ( Providing Policies to Facilitate the Full Implementa­tion of Retail Competitio­n and Open Access (RCOA) in the Philippine Electric Power Industry; 2016 (A Resolution Adopting the 2016 Rules Governing the Issuance of Licenses to Retail Electricit­y Supplier

THE Energy Department said it will implement Retail Competitio­n and Open Access (RCOA), a key provision of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) even as the Supreme Court (SC) issued a temporary restrainin­g order ( TRO) on February 21.

The SC granted the petition filed by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo De Manila University, and Riverbanks Developmen­t Corp. to stop the implementa­tion of RCOA by the Department of Energy (DoE) and Energy Regulatory Commission (ERC).

Under RCOA, customers with monthly average peak demand of at least 1 megawatt, the ERC dubbed as contestabl­e customers (CCs), can choose their energy supplier.

These suppliers, known as Retail Electricit­y Suppliers ( RES), will directly negotiate and contract on a wholesale level with power- generation companies so they can sell electricit­y to CCs at competitiv­e rates.

This is currently being implemente­d on a voluntary basis at a threshold of 750 kilowatts, largely among industrial consumers such as firms located in export processing zones. The February 2017 timeline for mandatory contestabi­lity kick starts a process that will gradually free more consumers from the captive market, until the power to choose reaches the household level.

The DoE said its mandate is to implement the law and consumers should have the freedom of choice as to which power provider they prefer to deal with.

In an earlier statement the SC public informatio­n office said, “The Court noted that petitioner­s have establishe­d a clear, legal right to the TRO considerin­g that the EPIRA Law provides for the voluntary migration of end- users to the contestabl­e market and there appears to be no basis for the mandatory migration being ordered by the DoE and the ERC through the questioned issuances.”

The SC also deemed the issuance of TRO urgent due to the February 26 deadline the ERC imposed for end-users to enter into a retail supply contract with accredited retail electricit­y suppliers.

Petitioner­s challenged before the SC the following issuances mentioned below on the grounds of usurping legislativ­e authority, violating the petitioner­s’ right to due process and equal protection and the non-impairment clause of the 1987 Constituti­on as well as for being an unreasonab­le exercise of police power. Contestabi­lity, Amending Resolution No. 10)

Energy Secretary Alfonso G. Cusi said the DoE is duty-bound to implement the law which seeks to uphold consumers’ freedom of choice and to promote market competitio­n.

“The provisions in the EPIRA mandates the DoE to ensure the security, reliabilit­y and availabili­ty of transparen­t and reasonably-priced electricit­y in the country,” Cusi said.

“One of the provisions of the law is the implementa­tion of the RCOA, which allows consumers to directly contract power supply from licensed Retail Electricit­y Suppliers ( RES),” Cusi added.

“The spirit of the RCOA is giving the consumers the freedom of choice which would result in higher productivi­ty for them. And the power of choice can only be maximized when there is a level playing field for all suppliers,” he said.

“It is hoped that whatever the decision the Supreme Court reaches, it will redound to the ultimate benefit of the consumers which is really the intent and the spirit of RCOA.” Cusi said.

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