Big users soon able to choose power supplier under open access scheme

Big power users, including commercial and industrial enterprises, will soon be able to choose which suppliers to buy electricity from under the Open Access and Retail Competition Scheme expected to be implemented starting September this year.

According to Energy Secretary Jose Rene Almendras the government is on track of its target timelines to implement the scheme

Under the open-access scheme, large consumers would be able to select their power suppliers, unlike in the current system where users are compelled to buy from the supplier which has jurisdiction over their respective areas.  The scheme is expected to intensify competition among power stake holders, resulting in better, more competitive prices of electricty.

However, there is no certainty power rates will go down, though this is possible for large power users.   “But for the rest of the consumers, maybe not yet.,” said Almendras.  “So we really want to manage it because if you don’t manage the open-access scheme well, it might increase further prices for consumers.  That’s why we need to be careful and we need to pace it.”

The Department of Energy has shunned offers from the private sector, including one from conglomerate San Miguel Corporation, to put together all the necessary systems and IT infrastructure for the implementation of the program.  This was meant to ensure the integrity of the mechanisms as well as to prevent any group from gaining a competitive edge, explained Almendras, who expressed his preference the government itself should do the main installation work.

Almendras nevertheless said the government will soon bid out to interested software companies the provision and installation of the infrastructure that will allow for the smooth operation of the B2B and the accounting, billing and settlement systems which are crucial to the success of the open access and retail competition scheme.

Photo: “Sending power” by 世書 名付, c/o Flickr. Some Rights Reserved