The Department of Energy (DOE) and the Energy Regulatory Commission (ERC) have agreed to extend the deadline for the retail competition and open access (RCOA) scheme to next year, Feb. 26, 2017.
This gives end – users with an average monthly peak demand of at least one megawatt (MW) to secure a contract supply from retail electricity suppliers (RES) more time to find suppliers.
The ERC has formalized to move the implementation of the mandatory migration for CCs next year, Chairman Jose Vicente Salazar said.
“CCs which fail to finalize a retail supply contract (RSC) with a retail electricity supplier (RES) shall have the option to be served by the distribution utility (DU) as a supplier of last resort (SOLR),” he said.
DOE secretary Alfonso Cusi said that the new schedule was “realistic” to finally push through with the open market scheme.
“But we agreed. because we’re pushing for that RCOA,” Cusi said, who initially didn’t want to extend the deadline.
Meanwhile, The ERC is resolved to review the SOLR rules to make sure that the applicable SOLR rate would not be burdensome on the contestable customers (CCs.)
Large power users were originally mandated to enter into retail supply contracts (RSC) by December 26.
Under the RCOA regime, end-users who are part of the contestable market, or CCs, are given the choice to choose their electricity supplier aimed to foster competition in the generation and supply sector.