SC ruling to ultimately decide competitive selection’s fate — ERC

THE Energy Regulatory Commission (ERC) told consumer groups to manage their expectations on how their issues against the competitive selection process (CSP) for power supply contracts will be resolved as a case on the matter remains pending with the Supreme Court.

In a statement on Tuesday, ERC Chairman Agnes T. Devanadera said she had reached out to the consumer groups — in particular, Freedom from Debt Coalition and United Filipino Consumers and Commuters — to listen to their concerns and clear issues involving CSP.

“This consumer dialogue started from a simple conversation and has now developed into a forum where we can discuss the consumers’ issues and concerns on electricity matters,” she said.

“We will take their issues into consideration, but we also have to manage their expectations considering the fact that there is already a pending case before the Supreme Court on CSP,” she added.

CSP requires power supply agreements (PSAs) between energy generation companies and distribution utilities to be subjected to price challengers, a process aimed at drawing the lowest cost of electricity for consumers.

In November 2016, a consumer group asked the Supreme Court to block ERC approval of the PSAs between Manila Electric Co. (Meralco) and a number of power generation companies covering 3,551 megawatts.

The “forum” between the ERC and the consumer groups, which took place on Friday, was attended by consumer advocates who provided documents to Ms. Devanadera “to apprise and aid her” in addressing their issues, the regulator said.

Although the talks focused on bringing down the cost of electricity, the groups also requested for a response on their position papers from the ERC chair, who assumed office in early December last year.

The ERC said future fora will tackle performance-based regulation and other regulatory concerns. The commission said the same consumer groups, together with civil society organizations, had staged a rally in front of the ERC on Jan. 15, 2018.

“This is a positive development and this is just the first of the many forums to be held of this kind. Our doors are open and we expect that the consumer groups will go along with these forums with an open mind and understanding that each of us has a role to play in order to have checks and balances in our regulatory system,” Ms. Devanadera said.

Separately, the ERC has yet to receive any directive from the Department of Energy (DoE) on the policy maker’s move to allow power generation companies to continue their operations despite having lapsed certificates of compliance (CoC).

“We have not been furnished a copy of the said directive. However, we understand the concern of the DoE in ensuring that there be continuous supply in the country,” said Floresinda B. Digal, ERC spokesperson.

Earlier this week, the DoE said it had agreed with the Philippine Electricity Market Corp. to allow power generation companies with expired CoCs — including those with pending applications — to continue operating and trading at the wholesale electricity spot market.

The move comes in view of fears about possible delays in the processing of CoC applications with the ERC as a result of the suspension of its four commissioners. The CoC is proof that a power plant complies with the applicable regulations, clearing it as safe to switch on and operate.

“For the ERC part, all staff work at the level of services were completed for these applications but were not presented to the Commission for its deliberation because of the suspension,” Ms. Digal said. —