ERC Calls for Comments on the Proposed New RCOA Timeline

PRESS STATEMENT: ERC Calls for Comments on the Proposed New RCOA Timeline

The Energy Regulatory Commission (ERC), in a Notice issued pertinent to ERC Case No. 2020-002 RM in re:  Draft Resolution Prescribing the New Timeline for the Implementation of Retail Competition and Open Access (RCOA), sought comments from all interested parties on the proposed Resolution until 12 October 2020.  The first draft of the proposed Resolution aims to provide guidance on the implementation of the RCOA scheme, more particularly the updated timeline for the full implementation thereof.

"We are requesting all interested parties to submit their comments or inputs on the Draft Resolution Prescribing the New Timeline for the Implementation of Retail Competition and Open Access (RCOA) to ensure that we leave no stone unturned and ensure the seamless implementation of the RCOA", said ERC Chairperson and CEO Agnes VST Devanadera. 

At present, RCOA is implemented in the Luzon and Visayas grids for the Phase I (1MW & up) and Phase II (750kW-999kW) contestable customers, on a voluntary basis.  The ERC's draft Resolution prescribes the time frames for the lowering of the threshold or the average monthly peak demand to cover end-users, as follows:  

                           Threshold                             Level Effectivity

Phase III              500 kW to 749 kW               Feb. 26, 2021

Phase IV              100 kW to 499 kW               Jan. 26, 2022

Phase V               10 kW to 99 kW                   Jan. 26, 2023

End-users who meets the threshold level shall be allowed to contract with any licensed/authorized suppliers of electricity on a voluntary basis.  

The RCOA shall be effective in grids where the Wholesale Electricity Spot Market (WESM) is operational.  All suppliers of electricity shall be licensed or authorized by the ERC to supply in the Competitive Retail Electricity Market (CREM).  

Under the RCOA environment, the qualified Contestable Customer will be notified by the Network Service Providers of the former's ability or option to choose his electric service provider and may switch to his preferred Retail Electricity Supplier (RES).  Meanwhile, the Meter Service Provider (MSP) shall install the meter facilities that will measure the energy use and demand of the qualified contestable customer.  The MSP is the person or entity authorized by the ERC to provide metering services in the CREM.

"The benefits of the RCOA scheme will soon come to fruition despite the temporary setback that came up against its implementation.  The envisioned competition in the retail level of the supply sector will soon be a reality and the consuming public will be the beneficiaries of the RCOA as they can opt to choose the electricity provider that offers the most competitive price", Chair Devanadera added.