Question & AnswerQ&A (ERC Resolution NO. 01, S. 2006)
Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001 (EPIRA), mandates the implementation of retail competition and open access.
The DSOAR provides rules, terms, and conditions for Distribution Connection Assets and Services, Service to the Captive Market, Supplier of Last Resort Service to the Contestable Market, Unbundled Distribution Wheeling Service, and Guidelines for Establishing Regulated Service Rates.
The Energy Regulatory Commission (ERC) approved and adopted the Distribution Services and Open Access Rules.
The resolution was adopted on January 18, 2006.
The DSOAR supersedes the Energy Regulatory Board's Standard Rules and Regulations Governing the Operation of Electrical Power Services and ERB Resolution 95-21, as amended by ERB Case No. 95-368 dated April 10, 2000.
Distribution Connection Assets refer to facilities and equipment used to connect the distribution system to the transmission system or generation sources to allow power delivery to end-users; their specific definition is found in the DSOAR annex.
Service to the Captive Market refers to the distribution services provided to customers who are not yet contestable or eligible to choose their electricity supplier, ensuring their continued electricity supply.
The Supplier of Last Resort Service is a regulatory mechanism that ensures continuous electricity supply to consumers in the contestable market when their chosen supplier fails to provide service.
Unbundled Distribution Wheeling Service refers to the provision of distribution system access to different electricity suppliers, enabling competition in the supply of electricity to consumers.
DSOAR provides guidelines for establishing regulated service rates to ensure fair pricing and avoid unreasonable charges in the distribution and open access services.
The resolution takes effect immediately following its publication in a newspaper of general circulation in the country.
Public consultations were conducted on June 16-17, 2005, and July 14, 2005, as part of the process to develop and promulgate the DSOAR.