Power supply aggregation set for implementation by 2019

by Myrna Velasco – November 17, 2015

from Manila Bulletin

The Energy Regulatory Commission (ERC) is firming up year 2019 as the target date for power supply aggregation in the highly anticipated mandatory retail competition in the restructured electricity sector.

In the second draft of the Rules for Contestability issued by the industry regulator, the ERC has prescribed that “aggregation of demand shall subsequently be allowed…on 26 June 2019.”

It will be one year after the lowering of peak demand threshold to 500 kilowatts (kWs) – which is targeted on June 26, 2018.

At mandatory retail competition, the initially lowered peak demand threshold for qualified contestable customers will be at 750kWs to be enforced June 26 next year.

Contestable customers are those end-users who can already exercise their power of choice in contracting electricity supply that shall meet their demand – based on the threshold set by the industry’s contestability rules.

At aggregation phase, the ERC has explained that “suppliers of electricity shall be allowed to contract with end-users whose aggregate demand within a contiguous area is at least 500kW.”

Contiguous area, as defined, shall refer to “the joining of two or more end-users within a contiguous area into a single purchasing unit, wherein such purchasing unit shall be part of the contestable market.”

The areas that may qualify for supply aggregation are subdivisions, villages, economic zones, business districts and other similarly-situated end-users, “in which the supply of electricity can be measured through metering devices,” according to the ERC.

There are several concerns being sorted out yet in the Contestability Rules for the Retail Electricity Market, primarily on the mandatory migration of contestable customers.