Republic of the Philippines

ENERGY REGULATORY COMMISSION

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ERC Adopts Amendments to the Net-Metering Rules

The Energy Regulatory Commission (ERC) through Resolution No. 06, Series of 2019, adopted the amendments to the Rules Enabling the Net-Metering Program for Renewable Energy (“Net-Metering Rules” for brevity).  

The Net-Metering Program enables an ordinary electricity consumer to become a “prosumer”.  As a prosumer, the ordinary electricity consumer generates electricity for its own consumption, as well as sell any excess generation to the distribution grid.

The Net-Metering Program is a non-fiscal incentive mandated by the Renewable Energy Act.  To implement this incentive, the ERC promulgated the Net-Metering Rules as early as 2013.

During the implementation of the 2013 Net-Metering Rules, significant concerns were raised by the stakeholders.
 
    “The Amended Net-Metering Rules address the concerns raised by various stakeholders on the Net-Metering program implementation.  It provides benefits that work for the welfare of the prosumers or Qualified End-User, including a simplified permitting procedure and reduced installation soft costs for renewable energy facilities, among others.  It likewise takes into account the impact of this program to non-net-metering customers”, said ERC Chairperson and CEO Agnes VST Devanadera.

The Amended Net-Metering Rules prescribe a maximum 20-day processing timeline for the Distribution Utilities (DUs) to complete the whole interconnection process from receipt of the letter of interest; provided all necessary permits and licenses from various concerned agencies are secured and completed.

The Distribution Impact Study (DIS) fee and other related soft costs were also removed in order to encourage participation from end-users.  The ERC has considered that the conduct of DIS is a regular activity of the DU to ensure the reliability and stability of the Distribution System.  Hence, the ERC deemed it unnecessary to impose additional charges for its conduct.

The Pricing Methodology under the Amended Net-Metering Rules maintained the DUs’ blended generation cost excluding other generation adjustments, instead of the proposed retail rate.  Adopting the blended generation cost as basis for pricing would result to the avoidance of higher cost of electricity for consumers. 

Further, the Amended Net-Metering Rules also rationalized the sharing of lifeline rate subsidy among all consumers.

“The Net-Metering Program is ERC’s contribution to empower the consumers”, ERC Chair Devanadera emphasized.

 

Today at ERC
Tuesday, November 12, 2019

Hearing Schedules
Time:
10:00
Case No.:
2019-001 DR [EV]
Applicant:
CPGI
Venue:
ERC Hearing Room (15th floor)
Title:
In the Matter of the Petition for Full Recovery for Approved Costs in ERC Case No. 2011-030 RC Through Re-Computation of Approved Rate
Time:
14:00
Case No.:
2016-149 RC [CH]
Applicant:
PSALM
Venue:
ERC Hearing Room (15th floor)
Title:
In the Matter of the 6th Application for the True Up Adjustments of Fuel and Purchased Power Costs (TAFPPC), and Foreign Exchange - Related Costs (TAFxA) under the Rules of the Automatic Recovery of Monthly Fuel and Purchased Power Costs and Foreign Exchange Related Cost by the National Power Corporation, as Amended
Time:
14:00
Case No.:
2017-007 MC [CI]
Applicant:
Catuiran Hydropower Corporation (CHC)
Venue:
LS Conference Area (15th floor)
Title:
In the Matter of the Application for Authority to Develop, Own and Operate a Dedicated Point to Point Limited Transmission Line to Connect the 8 MW Catuiran Mini Hydro Plant to ORMECOs 69 kV System

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