ERC OKs rules on electricity retail aggregation program

The Energy Regulatory Commission (ERC) has approved the rules governing the aggregation of electricity requirements of end-users in the Competitive Retail Electricity Market (CREM).

“We have just promulgated the Rules for the Electric Retail Aggregation Program which is another means of empowering consumers to exercise their freedom of choice,” ERC Chairperson and CEO Agnes VST Devanadera said.

At the same time, the ERC welcomed the pilot implementation of Retail Aggregation scheme in UP Diliman Campus during the signing of memorandum of understanding (MOU) between the University of the Philippines and the Manila Electric Co. (Meralco).

“The ERC would like to thank the UP and Meralco for their initiative in making possible this pilot implementation. This pilot will help promote Retail Competition and Open Access.

“With their partnership, we hope that the electricity consumers will be more enlightened about the benefits of retail aggregation which ultimately is for the consumers to have the power to choose from among the electricity suppliers that offer better rates and better services,” Devanadera said.

The Rules for the Retail Aggregation Program seeks to establish standardized rules and procedures governing the aggregation of electricity requirements of end-users in the CREM.

It will also prescribe and clarify the requirements, conditions, eligibility, qualifications and disqualifications of participants in the Electric Retail Aggregation Program, the agency added.

As of April 2022, a total of 1,897 contestable customers with total demand of 3,924.53 megawatts are enjoying lower rates in the retail market, with a weighted average generation rate of P4.05/kWh.

The said program is a scheme wherein two or more end-users or all end-users within a contiguous area joined together and are treated as a single contestable customer, based on the current threshold demand prescribed under the rules, wherein such contestable customer shall be part of the contestable market, and enjoy the benefits enjoyed in the Retail Competition and Open Access.

The retail aggregation rules shall apply to end-users; Retail Electricity Suppliers, Local Retail Electricity Suppliers, Distribution Utilities, Suppliers of Last Resort, National Grid Corporation of the Philippines, Central Registration Body and all other relevant industry participants.

Aggregation of the electricity requirements of end-users whose total monthly average peak demand is at least 500 kilowatts within a contiguous area shall be implemented effective December 26, 2022.