ERC Amends the Open Access Transmission Service Rules
The Energy Regulatory Commission (ERC), seeing the need to update the existing Open Access Transmission Service (OATS) Rules promulgated in 2006, amended the same to consider and incorporate more recent regulatory policies of the Commission and address concerns raised by electric power industry stakeholders.“The Commission deemed it appropriate to amend the 2006 OATS Rules to harmonize it with relevant rules and guidelines that we have promulgated. The amended OATS Rules will also clarify concerns from the various transmission customers, the Department of Energy (DOE), and the National Grid Corporation of the Philippines (NGCP), particularly on the computation of Transmission Charges. In addition, we have also set the Transmission Charges that will be applicable to Embedded Generators (EGs) that are mandated to register with the Wholesale Electricity Spot Market (WESM),”
ERC Chairperson and CEO Agnes VST Devanadera expounded.
The significant provisions of the 2006 OATS Rules that were amended in the 2022 Edition are as follows: (1) Billing Determinant under Module F; (2) System Impact Studies (SIS) under Module B; (3) Penalty Provisions; (4) Interruption and Curtailment Billing Adjustment under Clause F (AV)1; and (5) Force Majeure Adjustment under Clause F(AV)2.
The Rules, Terms and Conditions for the Provision of Open Access Transmission Service (OATS Rules) spells out the services provided by the Transmission Network Provider that operates the high voltage backbone transmission system. It outlines the responsibilities of the Transmission Network Provider and the functions of the System Operator as specified in the Philippine Grid Code (PGC) and the Wholesale Electricity Spot Market (WESM) Rules. The OATS Rules also set out the responsibilities accepted by Transmission Customers as a condition for receiving the services.
The OATS Rules are grounded on the Implementing Rules and Regulation of R.A. 9136 (EPIRA), the PGC and the WESM Rules. The OATS Rules complement the Rules for Setting Transmission Wheeling Rate (RTWR) and the WESM Manuals.
The OATS Rules provides that the ERC may choose to initiate amendments thereto for the second and subsequent Regulatory Periods at any time. Such action may result from the ERC’s assessment of the OATS Rules or through concerns submitted by Transmission Customers. “The Open Access Transmission Service (OATS) Rules 2022 Edition seeks to ensure a more transparent Electricity Market, along with the provision of safe, reliable, and efficient operation of the Power System,”
ERC Chair Devanadera concluded.