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Almendras finds timeline on OARC implementation ‘very challenging’

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A LOT of challenges need to be hurdled to ensure the smooth implementation of open access and retail competition (OARC) in the power industry, Energy Secretary Jose Rene Almendras revealed on Monday.

“We’re discussing with the Energy Regulatory Commission [ERC] on how best to implement open access. The timeline is very, very challenging,” the Energy chief told mediamen.

In explaining why he finds the timelines challenging, Almendras said there are rules, systems, infrastructures, contracts to bid out, meter standards and meter suppliers that still need to be put in place.

“There are still problems and challenges, that I’m still looking for solutions. We’re looking for solutions to these challenges that will need time and resources,” he added.

The ERC has set December 26, 2011, as the start of OARC, which will introduce competition in the retail supply segment of the electric power industry.

Open access and retail competition will allow electricity end-users with an average monthly peak demand of one megawatt (MW) to choose their electricity service supplier.

According to the Electric Power Industry Reform Act, the introduction of OARC will be gradual, starting first with end-users with a 12-month average demand of at least 1 MW.

The coverage shall be expanded after two years to customers with a 750-kilowatt individual or aggregated demand.

 

 


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