ERC Rules on Open Access and Retail Competition

Applies to key market participants: Central Registration Body (CRB), Contestable Customers, Retail Electricity Suppliers (RES), Local RES, Distribution Utilities (DUs), Supplier of Last Resort (SOLR), National Grid Corporation of the Philippines (NGCP), Metering Service Providers (MSP), and other relevant entities.
Includes entities supplying electricity in economic zones.

Contestable Customer (CC): Electricity end-users qualified to choose their supplier.
Distribution Utility (DU): Franchise holder operating distribution systems.
Retail Electricity Supplier (RES): Authorized entities selling electricity to contestable customers.
Local RES: Non-regulated DU business segment supplying within franchise area or economic zones.
Supplier of Last Resort (SOLR): Designated entity obligated to supply electricity when others fail.
Open Access: System allowing qualified users to use transmission/distribution facilities subject to approved fees.
Other terms include Business Day, Cooling-Off Period, Wholesale Electricity Spot Market (WESM), among others.

From Dec 26, 2012 to June 25, 2013, DUs continue supplying Contestable Customers at rates equal to captive customers.
Contestable Customers who do not contract with RES by June 26, 2013 continue receiving supply from DUs but must prove efforts to contract with an RES.
Government entities may remain supplied by DUs until procurement guidelines are issued.
Directly Connected Customers maintain status quo supply during transition.
CRB to develop market manuals, IT infrastructure and registration database.
SOLR designated DUs to provide last resort supply services.

Source power for Contestable Customers from existing contracts or negotiate new contracts at approved rates.
Seek ERC approval for new contracts if rates exceed existing approved levels.
Responsible for procuring energy for system losses and recovering related costs through approved system loss charges.
Handle billing of pass-through charges and over/under recovery settlements.

Contestable Customers must enter into Retail Supply Contracts (RSC) with RES/Local RES by May 20, 2013.
Retail suppliers to notify the CRB of contracts and submit switch requests within specified timelines.
Failure to switch by June 26, 2013 may result in disconnection or transfer to SOLR.
Cooling-off period of 5 Business Days allows customers to cancel contracts.
ERC provides assistance to customers without RSC by March 25, 2013.

SOLR rates initially set at higher of WESM market price or bilateral contract price, plus 10% premium.
SOLR designated by ERC and notified by April 25, 2013.
SOLR provides supply during last resort events or customer disconnection scenarios.

Distribution services include regulated provisioning to captive and contestable customers, RES/Local RES, and generation companies.
System loss charges computed per established ERC methodology.
Transmission wheeling service charges to be procured and billed by DUs or NGCP for direct transmission customers.

DUs to renegotiate contracts lacking provisions on volume reduction due to migration of contestable customers.
Excess contracted energy may be sold to RES, assigned to Local RES, or sold in WESM.
Gains from excess supply sales shared with captive customers according to specified formula.

ERC reviews justification of recoveries related to regulated generation, transmission, taxes, subsidies, and surcharges.
Over/under recoveries refunded or collected from contestable customers for periods when they were captive.
Universal charges continue to be billed and remitted through existing channels.

Violations subject to fines and penalties as per ERC's administrative sanctions guidelines.
Provisions severable; invalidity of any rule does not affect the remainder.
Rules effective immediately upon publication in a newspaper of general circulation.