ERC asks distribution utilities to shoulder cost of net metering

The Energy Regulatory Commission ordered distribution utilities to shoulder the cost of meter under the net-metering program.

The ERC issued a resolution clarifying certain provisions of the amended net-metering rules issued last year to properly guide electric power industry stakeholders and encourage more qualified end-users to participate in the net-metering program. 

It seeks to clarify ERC Resolution No. 6, Series of 2019 pertinent to the amendments to the rules that allow the net-metering program for renewable energy. 

The net-metering program as mandated by the Renewable Energy Act transforms an ordinary electricity consumer to become a “prosumer,” with the ability to generate electricity for his own consumption and sell any excess generation to the distribution grid.

An ordinary electricity consumer can become a “prosumer” if he can generate electricity for its own consumption while any excess generation can be sold to the distribution grid.

“We have clarified certain provisions in the amended net- metering rules by providing explicit definitions, conditions or situations and to avert varying interpretations by the stakeholders”, ERC chairperson Agnes Devanadera said.

The ERC addressed the issues raised by stakeholders of which the most concern is the cost of the renewable energy certificate meter and the attendant installation cost.

ERC said this was clarified in the subject resolution that the cost of the meter was to be shouldered by the DU while the wiring cost from the facility to the REC meter should be borne by the qualified end-user.

“With the clarifications that we have issued, we hope that any ambiguity will be eliminated, and that more end-users will be encouraged to participate in the net-metering program.  Qualified end-users will be empowered with the program as they are ensured of a sustainable power supply and they also help decongest the power grid,” Devanadera said.

Topics: Energy Regulatory Commission , Renewable Energy Act , Agnes Devanadera , electric power industry
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