Energy Dept: Open access to power supplier starts in 2011

The Energy Department on Wednesday said the "open access" policy will likely take effect next year, paving the way for industrial consumers to choose their own power supplier. But before the implementation of this policy, Energy Secretary Jose Rene Almendras said the country must be enough and stable power supply. "I'm not sure if first quarter [2011] will be the right time to do it. Still, we need to understand first the dynamics of the 'open access' policy," Almendras said. He said even though government will not be able to push through with the privatization of another independent power producer contract this year, the "open access" policy will still be implemented by 2011. The Power Sector Assets and Liabilities Management Corp. (PSALM) postponed the bidding of the 110-megawatt (MW) Naga power plant complex in Cebu on Aug. 18 and the 640-MW Unified Leyte geothermal power plants in Tongonan, Leyte on July 30. PSALM declared the sale of the 650-MW Malaya thermal power plant a failure after only one participant submitted a bid on June 16. The Arroyo administration wanted to put in place the open access policy once the contracted capacity of Malaya was sold. Large power users — especially in the semiconductor industry — were waiting for the open access policy to help lower electricity costs. Open access policy is similar to the power supply option program or PSOP, where high-load electricity consumers in Luzon are given the power to choose their own energy supplier but only on a voluntary basis. The PSOP stemmed from the a 2008 petition filed by several industry players seeking an early implementation of the open access policy. —JE, GMANews.TV