QuestionsQuestions (ERC Resolution NO. 22, S. 2013)
It cites Republic Act No. 9136 (Electric Power Industry Reform Act) as the statute pursuant to which the ERC promulgates the amendments to the RES license rules.
ERC Resolution No. 1, Series of 2011, entitled “Adopting the Revised Rules for the Issuance of Licenses to Retail Electricity Suppliers.”
Issues raised by Contestable Customers about difficulties obtaining fixed offers from RES, the unavailability of RES and generation company capacity, and the need for regulatory interventions to ensure smooth implementation of retail competition and open access.
A Generation Company or affiliate; an affiliate of a DU with respect to Contestable Customers within or outside its franchise area; an IPPA Administrator; and any other person intending to sell, broker, or market electricity to the Contestable Market consistent with the Act and implementing rules.
It provides that during the transition period (until ERC deems appropriate), no Generation Company or IPPA Company shall be issued a RES License.
Generation Companies with existing RES Licenses remain honored until their licenses expire, but they are subject to limitations under Section 5, Article II.
RSCs of Generation Companies whose RES Licenses have expired shall be assigned to other licensed RES.
ERC must evaluate market conditions for readiness no later than June 25, 2015 for full operations of RCOA.
It states that the capacity controlled by any or all RES entities in a business conglomerate shall be included in limitations on total capacity controlled by its Generation Companies, and shall be limited to 30% of grid capacity and 25% on the national level.
A RES may only sell up to 50% of its total capacity to all of its end-user affiliates.
In no case shall a RES and affiliate RES, acting singly or collectively as one or as an aggregate, purchase more than 50% of their capacity requirements from their affiliated Generation Companies.
Projected five-year financial statements and a five-year business plan detailing target customers, capacity and energy allocations, and value-added services (with an outline to be provided by ERC).
Within 60 working days from effectivity, licensed RES must initially submit: (1) retail supply contracts, and (2) a five-year business plan. Thereafter, they must submit these annually without need of further notice.
ERC may review all existing and currently transacted retail supply contracts to ascertain they were negotiated on an arms-length basis and do not violate market control or anti-competitive rules.
For market monitoring and evaluation purposes, to ensure ongoing assessment of the RES’s business direction and allocations based on its updated plan.
They take effect fifteen (15) days following their publication in a newspaper of general circulation.
Other parts or sections not affected by the invalidated portion shall continue in full force and effect.