Policy Directions of the

Energy Regulatory
Commission

ERCs Regulatory Initiatives

Competitive Selection
Process (CSP)
Retail Competition and
Open Access
Revisions to RE Policies
Institutional
Strengthening

 RESOLUTION NO. 13, SERIES OF 2015

A RESOLUTION DIRECTING ALL DISTRIBUTION
UTILITIES (DUS) TO CONDUCT A COMPETITIVE
SELECTION PROCESS (CSP) IN THE
PROCUREMENT OF THEIR SUPPLY TO THE CAPTIVE
MARKET
RESOLUTION NO. 01, 2016
A RESOLUTION RESTATING THE EFFECTIVITY OF
ERC RESOLUTION NO. 13, SERIES OF 2015

Competitive Selection Process

(CSP)
Required
all
DUs
to
undertake a CSP for the
Power Supply Agreements
(PSAs) that they will enter
into for the supply to their
captive markets
PSA shall be awarded to the
winning
Generation
Company
following
a
successful transparent and
competitive selection process
or by Direct Negotiation

Competitive Selection Process

A successful CSP occurs when

the DU receives at least two (2)
qualified bids from entities
with which the DU is not
prohibited from entering into a
contract for power supply.

Direct Negotiation

Direct Negotiation with

interested party for the
supply of electricity may be
made by the DU after at
least two (2) failed CSPs.

Minimum Terms of
Reference
Required/Contracted Capacity
and/or Energy Volumes
Generation Sources
Method of procurement for fuel
(if applicable)
Cooperation/Contract Period
Tariff Structure (Unbundled)
Form of Payment
Penalties (if applicable)
Details on any Transmission or
Grid Connection Projects
Other Key Parameters

Benefits of the CSP

Ensures transparency in the
DUs supply procurement
Provides opportunities to elicit
the best price offers (lower
pass-on charge to consumers)
Lower cost means increased
purchasing power
Encourages Private Sector
Participation (PSP)

Effectivity of the CSP

The effectivity of the
CSP was restated to be
30 April 2016.
All PSAs on or after the
said date shall be
required,
without
exception, to comply
with
the
CSP
Resolution.

Renewal and
Extension of PSAs
PSAs approved or filed
with the ERC before 30
April 2016 may have one
(1) automatic renewal or
extension for a period
not exceeding one (1)
year from the end of
their respective terms.

Retail Competition and

Open Access

11

What is RCOA?

Non-discriminatory use of transmission and

distribution facilities
Scheme which paves way to the creation of a
Competitive Retail Electricity Market
(CREM)
CREM- Electricity market wherein contestable
customers exercise ability to choose suppliers
of electricity by virtue of open access in the
distribution system
12

RCOA Set-up
RES
Local RES
SOLR (regulated)
Sellers
(Supplier
s)

Buyers
(Contesta
ble
Customer
s)

1MW and
above
750kW-999kW
500 below
Household
level

RCOA open in 2
grids Luzon and
Visayas
Commerci
al
Operation
s
(26 June
2013)
Rules and
Regulatio
ns
governing
RCOA

ERC Rules
DOE Circulars

Salient Features
Suppliers
licensed by
ERC
Power to Choose
Deregulated prices
Contracts- Not subject to
ERC approval
Default Metering Services
Provider (MSP)= DU
For directly connected
Contestable
Customers, MSP shall
be NGCP
Single Billing
Concept
Monthly
switching
allowed
14

Recent RCOA Rules

RES Licensing

Revised Rules
for
Contestability

Restrictions on
CREM
Operations

RCOA Timeline

26 June 2016
- Threshold
Reduction
Date- 750kW
- Voluntary

26 Dec. 2016
26 June 2017

- Mandatory
26 June 2018
Contestability- -Mandatory
1MW and
Contestability- -Retail
above
750kWAggregation
999kW
-Lowering of
threshold to
500kW
subject to the
review of ERC

Statistics

(as of June 2016)

Number of Contestable Customers

With Retail Supply Contracts (RSC)

390

Without RSC

725

Number of Qualified
Contestable Customers
367

1MW and abov e (1st

Phase)
7 50kW-999kW (2nd
Phase)

25%

Demand of Qualified
Contestable Customers
1MW and abov e (1st Phase)
315MW

75%

7 50kW-999kW (2nd Phase)

7%

93%
1,115

Total System Peak Demand

11,463

Total Demand of 1MW and above

37.76%

Retail Electricity Supplier- 20 (as of 25 August 2016)

4,328 MW

Renewable
Energy
(RE)

18

Feed-in Tariff System

Resolution # 16
(July 12, 2010)

A fixed rate per kilowatthour

for
emerging
renewable energy sources,
excluding any generation
for own use, as approved
by the ERC.

Resolution # 15,
(November 19,
2012)

Section 7, R.A. 9513

19

Approved Feed-In Tariffs (FITs)

PhP/kWh

Particulars
First Batch
FIT Rates
2nd Batch
FIT Rates

WIND

BIOMASS

5.9000 9.6800 8.5300

6.6300

ROR
SOLAR
HYDRO

8.6900 7.4000

Overall FIT Framework

END-USERS

TransCo
FIT-ALL
21

Net-Metering Rules
Resolution # 9

23 May 2013

On-grid systems.
Installations of
<100kW
For eligible RE
Technologies
End-user should be
in good credit
standing
The RE System must
be compliant with
the standards
22

ERCs
Institutional
Strengthening

23

Work in Progress
Review and Enhancement of Rate-making Policies
(i.e. PBR, RSEC - WR, CAPEX, etc..)
Strengthening and Capacitating the ERC Field
Offices (Cebu and Davao)
Reorganization and Expansion of the ERC Central
Office
Cases Inventory and Resolution of case backlogs

Thank you!
Visit us at:

www.erc.gov.ph