ERC Seeks Comments on the Proposed Amendments to the OATS Rules and ASPP

ERC Seeks Comments on the Proposed Amendments to the OATS Rules and ASPP

The Energy Regulatory Commission (ERC), on 21 November 201, approved for posting on the ERC website (www.erc.gov.ph) the proposed amendments to the: (1) Open Access Transmission Service (OATS) Rules and (2) Ancillary Service Procurement Plan (ASPP). All concerned industry participants must submit their comments on or before 06 January 2012 (Friday) to tariffs@erc.gov.ph and/or to the Docket Section, 18th Floor, Energy Regulatory Commission, Pacific Center Bldg., San Miguel Avenue, Pasig City.
The amendments to OATS Rules and the ASPP are needed for the issuance of the Final Determination of the rates of the National Grid Corporation of the Philippines (NGCP) for its third regulatory period. The proposed amended OATS Rules have incorporated newly promulgated issuances of the ERC, more importantly ERC Resolution Nos. 15 and 16, Series of 2011, which pertain to these areas: (a) Procurement of Connection Facilities for a new connection to the Grid by a Transmission customer; and (b) Financing Arrangements: by the Transmission Provider or by the Qualified Distribution Utility or by the Direct Connect Customer or by the Generation Customer. The ASPP, on the other hand, is being proposed to be amended to: (a) include generators providing Regulating Reserve Service, and (b) specify that the ERC may approve different procurement methods for different Grids and also for different types of Ancillary Service.

The OATS Rules (first issued in February 2004 and amended in December 2006) specify the requirements that must be met by NGCP in managing and providing access to the high voltage backbone Transmission System. The OATS Rules also outline the responsibilities of the Transmission Provider and the functions of the System Operator as specified in the Grid Code and the Wholesale Electricity Spot Market (WESM) Rules. The OATS Rules also set out the responsibilities accepted by the Transmission customers as a condition of receiving the services.

The ASPP (which was first promulgated in March 2006) covers the following: (a) List of the Ancillary Services required by the Transmission Provider from power plants; (b) Identifies the arrangements for procurement governing the provision of such services, and (c) Details of the kind of Ancillary Services to be provided by power plants and/or other users. "Ancillary Services” are the necessary support services provided by qualified generators to the transmission network to allow the System Operator maintain power quality, reliability, and security of the Grid.

"The industry participants concerned are encouraged to submit their comments and inputs on the proposed amendments to the OATS Rules and the ASPP to ensure that concerns and interests relative to the high voltage transmission system and required ancillary services thereto are fairly addressed and considered, towards the successful implementation of power market reforms sought by the EPIRA,” ERC Chairperson Zenaida G. Cruz-Ducut stated.

December 15, 2011 (Reference: erc.gov.ph) - https://www.affordablecebu.com/