ERC adopts amended net-metering rules

Policymakers at the Energy Regulatory Commission have finally adopted metering rules recognizing the blended generation cost as basis for pricing renewable energy use among consumers.

THE Energy Regulatory Commission (ERC) has adopted the amended provisions to the net metering rules for renewable energy which aims to simplify permitting procedures and reduce installation costs for end-consumers.

In a statement on Friday, the ERC said among the amendments it adopted include a maximum timeline for interconnection processes, the removal of Distribution Impact Study (DIS) fee, and the retention of distribution utilities (DU) blended generation cost as basis for pricing, among others.

The ERC said under the amended Net Metering Rules of 2013, DUs shall have a maximum of 20 days to interconnect qualified end-users who will be installing renewable energy (RE) system, provided that the latter secured and completed necessary permits and licenses from concerned agencies.

The DIS fee, meanwhile, alongside other related soft costs, were removed in order to encourage participation from end-users.

The ERC said it considered the conduct of DIS a regular activity of the DU to ensure the reliability and stability of the distribution system. Hence, it deemed unnecessary the imposition of additional charges for its conduct.

The pricing methodology under the Amended Net-Metering Rules maintained the DUs’ blended generation cost, excluding other generation adjustments, instead of the proposed retail rate.

The ERC said adopting the blended generation cost as basis for pricing would result in the avoidance of higher cost of electricity for consumers.

The amended net-metering rules also rationalized the sharing of lifeline rate subsidy among all consumers.