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Energy Regulatory Commission’s

Regulatory Framework
Gloria Victoria C. Yap-Taruc
6 December 2016
 Outline
• Industry Structure prior to Electric Power
Industry Reform Act (EPIRA)
• Regulatory Framework under EPIRA
• Government Regulation
• Renewable Energy Act
Industry Structure
Prior to Electric Power
Industry Reform Act
(EPIRA)
 Generation Transmission Distribution Consumer

Owned and Owned and Private

operated by operated by Distribution Utility
National Power National Power or Electric
Corporation (NPC) Corporation (NPC) Cooperative Captive
Customers
Rates are fixed by Rates are fixed by
Rates are
NPC subject to NPC subject to
review of PSC review of PSC approved by ERB
Regulatory Framework
under
Electric Power Industry
Reform Act (EPIRA)
 Restructuring under EPIRA was Implemented in Tranches

RETAIL
COMPETITION

Establishment
of Spot Market
Removal of
Cross-subsidies
Privatization of
NPC Assets
Unbundling
 PEMC
Generation NGCP (SO) Distribution Consumer
(MO)

NPC’s
NPC’s PEMC acts as Transmission
Generating the Market Assets – private
Assets were Operator who owned by distribution
privatized to administer Transco but utility or
different the operated by electric captive
entities to Wholesale NGCP cooperative customer
jump-start Electricity (through a
competition Spot Market concession Regulated as
Open and agreement) Public Utility
Self-
Competitive Regulating Regulated as
Public Utility
Government Regulation
under EPIRA
 WESM Rules and PDM
subject to DOE and ERC Partially Regulated as to non-price
approval, Respectively issues by ERC

Retail
Generation
COMPETITIVE WESM Electricity
Companies
Suppliers

Owned
by TRANSCO REGULATED
PSALM

Private
Owned Electric
SPUG NGCP Distribution
by NPC Cooperatives
Utilities

Regulated by ERC
Supervised by NEA
 NPC NEA PSALM ERC

SUPERVISION COORDINATION

DOE
Retail Competition
and
Open Access
(RCOA)
 PEMC
Generation NGCP (SO) Distribution Consumer
(MO)

Suppliers of
Electricity can captive
be any of the 2 Markets:
following: (1) (1) Wholesale customer
generation Market; and
companies (2) OPEN OPEN
(GenCo); (2) Competitive
GEnCo Retail
ACCESS ACCESS
affiliated retail Electricity
suppliers; (3) contestable
Market
DU affiliated customer
retail suppliers
 PEMC
Generation NGCP (SO) Distribution Consumer
(MO)

Generally De- De-regulated.

However, the
regulated but
rules governing Regulated as captive
is indirectly the market Regulated Public Utility
regulated with participants are by Energy
customer
respect to as Public
subject to DOE’s Regulatory
power supply approval. On the Utility by
Commission
agreements other hand, the Energy (ERC) and
with methodology
Regulatory National
Distribution used for prices
charged in the Commission Electrification
Utilities
Administration contestable
catering to
market is (ERC)
subject to the (NEA) customer
contestable regulator’s (ERC)
customer. approval
Renewable Energy Act
 Salient Provisions of
Renewable Energy Act
• Competition between RE and Conventional
Power Plants
Feed-In Tariff System
RE generating units with intermittent RE resources
shall be considered "must dispatch" based on
available energy and shall enjoy the benefit of
priority dispatch.
• Renewable Energy Market
• Net Metering
 Feed-In Tariff System
Currently, the approved Fit Rate per technology are as follows:

Plant Technology FiT 1 FiT 2

Hydro PhP 5.9/kWh PhP 5.9/kWh
Biomass PhP 6.63/kWh PhP 6.63/kWh
Wind PhP 8.53/kWh Php 7.40/kWh
(10/6/2016)
Solar PhP 9.68/kWh. PhP 8.69/kWh
(3/27/2015)
On the other hand, the approved FiT Allowance is Php
0.1240/kWh (ERC Case No. 2015-216RC)
END OF PRESENTATION