ENERGY Secretary Jose Rene Almendras on Monday said the open access and retail competition (Oarc) scheme in the power sector should be implemented in the near the future, and at a time when electricity supply is sufficient and stable.

In a media interview, the energy chief said timing is key in making sure (Oarc) would not trigger power rates to spike further. Under the Oarc scheme, electricity end-users with an average monthly peak demand of one megawatt (MW) will be given a free hand to choose their electricity service supplier. 

 “It can happen next year, perhaps after the summer. Nevertheless, we have to wait for the technical working group’s recommendation,” he said.

Almendras said he does not want to make a recommendation without a basis for it, and that there is a need to determine which should be given priority before implementation.  “We’re also waiting for the rules to be finalized…because we believe that the DOE has a role in policies,  to be sure that the right structures are in place,” he added.

At the same time, Almendras said the Energy Regulatory Commission (ERC) will hear petitions to immediately implement or defer at a later date the implementation of Oarc.

The technical working group, Almendras said, is set to finish this month the actual evaluation on whether to push through with the scheme by December.

Almendras  added he is also asking the technical working group to come up with a specific timetable should it recommend for the deferment of the open access and retail competition’s implementation.

“But even if deferred, it should not take too long and there must be a definite timetable for the infrastructures that need to be in place as well as for the settlement and trading mechanisms,” he said.

Almendras added that there are people claiming that a full-blown system is not needed. “Perhaps, we can have semi-manual system for as long as the meter reading can happen at a good pace. Rest assured, we’re listening to everyone without prejudice to the hearings conducted by the ERC on the motions to defer the implementation of Oarc,” Almendras said.

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.