ERC revises parts of net metering rules

THE Energy Regulatory Commission (ERC) has revised provisions in its net metering rules to encourage more people to participate in a program that allows electricity end-users to supply to the grid.

The revisions came after the regulator issued a resolution clarifying certain provisions in the rules after several industry stakeholders raised issues over the definition of good credit standing; who should shoulder the cost of installing a renewable energy certificate (REC) meter and the wiring cost; where the REC meter should be installed; and under whose ownership should the meter or meters belong to.

“We have clarified certain provisions in the Amended Net-Metering Rules by providing explicit definitions, conditions or situations and to avert varying interpretations by the stakeholders,” ERC Chairman and Chief Executive Officer Agnes Devanadera said in a statement on Friday.

The most crucial concern raised by distribution utilities ( DUs), the ERC said, is the cost of the REC meter and its installation cost.

Under Resolution 5, Series of 2020, the DU should bear the cost of the meter’s installation, but the qualified end-user should pay the wiring cost from the facility to the REC meter.

The definition of good credit standing was also updated. It now refers to electricity end-users with no unsettled or outstanding obligation with the DU at the time of application.

Also, the location of the REC meter shall be placed at the connection point or at least near it, since Section 7.2.2.2 of the 2017 Philippine Distribution Code allows for a metering point other than the connection point for justifiable reasons.

All meters, the resolution says, shall be charged to the DU except for type 1 customers, where the difference between the old meter and the new bi-directional meter shall be borne by the end-user.

“With the clarifications that we have issued, we hope that any ambiguity will be eliminated and that more end-users will be encouraged to participate in the net metering program,” Devanadera said.

“Qualified end-users will be empowered with the program as they are ensured of a sustainable power supply and they also help decongest the power grid,” she added.

In October last year, the ERC announced the amendment of its net-metering program for renewable energy, which enables an ordinary electricity consumer to become a “prosumer,” with the ability to generate electricity for his own consumption and sell any excess generation to the distribution grid.