Customer Choice Strengthened by Rules on Customer Switching - ERC

The Energy Regulatory Commission (ERC) promulgated Resolution No. 26. Series of 2007 which adopted the Rules on Customer Switching (RCS). The RCS will establish standardized rules and procedures governing the commercial transfer of Contestable Customers from one competitive electricity supplier to another; and will ensure the efficient and timely exchange of information between and among competitive retail market participants, thereby facilitating metering, billing and settlements.

“The RCS is another major step towards the restructuring and modernization of the Philippines’ electric power industry,” ERC Chairman and CEO Rodolfo B. Albano Jr. said. “Customer switching will make use of state-of-the-art technology called the B2B IT or Business to Business Information Technology that will serve as the nerve center for facilitating customer switching arrangements, information transfers and settlement process for the competitive retail market participants,” Chairman Albano added. The B2B IT infrastructure will handle the information exchange among competitive retail market participants with the end in view of fulfilling an efficient switching and will keep track of the movement of end-users in the contestable market.

Under the RCS, switching of Contestable Customers from one competitive electricity supplier to another is allowed only at the end of a billing period. A Contestable Customer is an electricity end-user that belongs to the Contestable Market. Under the second phase of retail competition and open access, an aggregate of Contestable Customers shall be considered as a single Contestable Customer.

“The RCS is a clear indication that customers are to be provided with CHOICE. The RCS will ensure the smooth transition to a competitive environment and promote the interest of all stakeholders in the electric power industry,” Chairman Albano concluded.

Rules Customer Switching

December 12, 2006