“We have to bid out the contract. We have not received any formal bid from anyone to pay for the infrastructure and we’re not asking anyone to pay because we have the money. We already approved the allocation for that on the Cabinet level,” Energy Secretary Jose Rene D. Almendras said in an interview on Friday.
“Software companies will bid for the infrastructure because it has to be independent and should not favor generators or any one buyer more than the seller,” he added.
Companies have informally offered to pay for the infrastructure needed for the implementation of open access.
Open access and retail competition is a regime which electricity users of one megawatt (MW) and up will be able to choose where to source their power.
It was supposed to be implemented last Dec. 26 but had to be postponed because the necessary infrastructure and policies were not yet in place. Open access is a mechanism set by the Electric Power Industry Reform Act of 2001 and should have been declared after the privatization of at least 70% of both the government’s power-generating assets and its independent power producers administrator contracts.
Mr. Almendras said open access is planned to be implemented by the third quarter of the year.
“The terms of reference for the software infrastructure are being prepared and it will be bid out hopefully in the first half [of the year],” he said.
The software needed for open access will be used to monitor, settle and determine customers in the electricity market. Distribution utilities that will act as third-party brokers for power-generating companies called retail electricity suppliers will have to align their computer systems with the software being used by the market operator.
Mr. Almendras said it is important that the software is not handled by a market participant “because I want the infrastructure, the process and the procedures to be so unquestionable as far as integrity is concerned.”
The Energy department also said the settlement agent — or the agency that will handle the system for open access — will be part of the duties of the Philippine Electricity Market Corp. (PEMC). PEMC currently operates the Wholesale Electricity Spot Market.
Source:http://www.bworldonline.com/content.php?section=Economy&title=Energy-dep%E2%80%99t-set-to-bid-out-software-for-open-access&id=45464

