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LARGE
power users, particularly industries, would soon be
given the power of choice to select their power
supplier, with President Arroyo certifying the
Philippine Independent Power Producers Association’s (Pippa)
petition for interim open access as priority resolution
for the Energy Regulatory Commission (ERC).
Ernesto
Pantangco, president of Pippa, told a press conference
Friday interim open access will not, however,
immediately bring down rates but would do so in the long
term.
“With
our proposal for interim open access, contestible
customers of 1 megawatt [MW] and above will now have a
third option, which is to contract directly with
suppliers beyond the distribution utility and electric
cooperatives,” said Pantangco.
He said
that if a consumer at present avails itself of the
special ecozone rate of P3.27 per kilowatt-hour (kWh)
offered by the Manila Electric Co. (Meralco), and a
hydro offers P3/kWh, obviously that consumer will shift
to the hydro power plant.
“So what
we’re saying is that it will not automatically lower
rates. What we’re saying is that let competition, market
and consumers decide. If power is so crucial to
consumers’ operation and as long as they’re willing to
pay for premiums, then so be it,” he added.
Pantangco added that all generation companies, including
newly privatized National Power Corp. (Napocor) assets
that are under the mandated 30-percent market cap in a
grid and 25-percent of the national grid, will be
allowed to compete.
“Indirectly, this means the Power Sector Assets and
Liabilities Management Corp. [PSALM] and Napocor cannot
compete since they’re over the cap, and that’s what we
mean by level playing field. In other words, Epira was
meant and crafted for everybody to have a level playing
field. We don’t want to compete with government,” he
said.
Pantangco said they had proposed that the threshold or
demand requirement of one megawatt be reduced to 750
kilowatts (kW) six months after implementation of the
interim open access.
“With
the way Epira works, the threshold being reduced to 750
kW until it eventually reaches the households will be
determined by the ERC. So eventually it will reach the
household but that will be up to the ERC to determine.”
After
one ERC hearing, Pantangco said interim open access
could begin on June 23 at the earliest or end of June at
the latest based on their reading of the commission
chairman, Rodolfo Albano Jr.’s, statements.
Pantangco said they hope open access would encourage new
investments and attract transferred industries back.
“One
thing we’d like to emphasize with this proposal, there’s
no more need to amend the Electric Power Industry Reform
Act, since you have already achieved the objectives of
Epira, which is to bring forth open access,” said
Pantangco. |
