Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Clarifies Provisions in the Amended Net-Metering Rules

In a Resolution recently issued, the Energy Regulatory Commission (ERC) clarified certain provisions in the 2019 Amended Net-Metering Rules to properly guide the electric power industry stakeholders and encourage more qualified end-users to participate in the Net-Metering program.  The newly-promulgated Resolution seeks to clarify ERC Resolution No. 6, Series of 2019 pertinent to the Amendments to the Rules Enabling the Net-Metering Program for Renewable Energy.  

“We have clarified certain provisions in the Amended Net- Metering Rules by providing explicit definitions, conditions, or situations and to avert varying interpretations by the stakeholders”, ERC Chairperson and CEO Agnes VST Devanadera stated.

The ERC addressed in the subject Resolution the issues raised by stakeholders particularly on aspects pertaining to: (1) What is the definition of good credit standing; (2) Who should bear the cost of a Renewable Energy Certificate (REC) meter and the attendant wiring cost; (3) Where the REC meter should be installed; and (4) Under whose ownership should the meter/s belong to.  

The most crucial concern raised by the distribution utilities (DUs) is the cost of the REC meter and the attendant installation cost thereto. This was clarified in the subject Resolution that the cost of the REC meter is to be shouldered by the DU while the wiring cost from the facility to the REC meter shall be borne by the Qualified End-user.

The ERC implemented the Net-Metering Program in 2013, as mandated by the Renewable Energy Act.  This program transforms an ordinary electricity consumer to become a “prosumer,” with the ability to generate electricity for his own consumption and sell any excess generation to the distribution grid.

"With the clarifications that we have issued, we hope that any ambiguity will be eliminated and that more end-users will be encouraged to participate in the net-metering program.  Qualified end-users will be empowered with the program as they are ensured of a sustainable power supply and they also help decongest the power grid”, ERC Chairperson and CEO Agnes VST Devanadera added.


 


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