A Brief Overview of Open Access and Retail Competition

Current Set-up

Generation Transmission

Distribution

CaptiveCustomer

With OARC

Contestable Customer

Single Billing

DistributionTransmissionGeneration

Single Billing RES/Local

RES

3

Competitive generation

Regulated transmission

and distribution

Competitive retail

providers

End-

users Reformed Power Sector

Section 29. Creation of the electricity supply sector

Section 31. Pre-conditions for open access and retail competition

Legal Basis

5 Conditions Precedent

Unbundling Removal of

Subsidy

WESM NPC AssetsPrivatization

IPP Administrator

What are we looking forward to?

2011

• Declaration• Open Access

Date• 1 MW & up

2013

• 750 kW• Aggregation

2021

• Household demand level

Building the Framework

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Rules governing open access and retail competition• Rules defining the qualification of suppliers

and customers;• Rules governing the behavior and conduct of

the market participants;• Rules ensuring the provision of continuous

supply of electricity for the protection of the contestable customers;

• Rules governing the commercial transfer of customer from one supplier to another

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Building the Framework

RES Licensing Guidelines

Business Separation Guidelines

(BSG)

Code of Conduct

Competition Rules

Supplier of Last Resort

(SoLR)

DSOAR

Rules on Customer Switching

(RCS)

Rules for Contestability

Considerations

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Provisions of the EPIRA and its IRR

Sound economic and regulatory principles

Best practices in other jurisdictions

NEW PLAYERS

Contestable Customers

Retail Electricity Supplier (RES)

BUYERS SELLERS

676 - Luzon 65 - Visayas

14 licensed RES

1 potential SOLR for every DU’s franchise area

1 potential Local RES for every DU’s franchise area

Local RES

Supplier of Last Resort (SOLR)

Transitory Rules for the Initial Implementation of Open Access and Retail Competition

On-going (PubCon: Sept. 13, 2011 for 2nd Draft)

Clarifies pre-operational issues to ensure the smooth transition to a competitive retail electricity market

Provides procedures regarding the entry of participants into the competitive retail electricity market

Simplified switching process

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Thank You