Energy regulator paralyzed – Devanadera
“THE paralysis starts today.”
These were the words of Energy Regulatory Commission ( ERC) Chairman and Chief Executive she faced reporters for the first - budsman suspended four ERC commissioners over controversial power supply agreements (PSAs).
Based on an initial assessment, all pending PSA applications, consisting of 135 cases, amounted to P1.2 trillion.
The projection includes the equivalent monetary value of capital expenditures ( capex) of P384.5 billion, point- to- point transmission of P2.2 billion, sale of sub- transmission cases of P0.9 billion, and the accrued interest of feed- in tariff allowances (FiT-all) of P526.7 million.
“Most of this will all be passed on to consumers. The longer we do not act on this, the more consumers will suffer,” the ERC head stated.
“The Ombudsman’s decision to suspend the four ( 4) ERC Commissioners will have a substantial impact on the whole country and presents a dangerous regulatory risk that will severely environment of the country,” Devanadera said.
As a collegial body, the ERC needs at least three members to constitute a quorum, enabling the government agency to adopt any ruling, order, resolution, or decision, as well as perform other functions to exercise its quasi- judicial and quasi- legislative functions.
Devanadera said the ruling was contrary to the Duterte administration’s pro- poor policy as 73.6 million Filipinos would be adversely affected by any nonaction on the regulator’s part.
It will also have an impact on the “Build, Build, Build” infrastructure program of the government, “especially we’re talking of trillion of pesos that will be put into the mainstream economy,” she said.
Devanadera is slated to send to President Rodrigo Duterte a letter outlining the impacts of the imminent one- year suspension of ERC Commissioners Gloria Victoria Yap-Taruc, Alfredo Non, and Geronimo Santa Ana.
“Basically, what I will be em is the impact of the institution. Having no commissioners, we will not move,” Devanadera told
The September 29 decision, which was signed on December 11 but was made public this week, found the ERC officials guilty of conduct prejudicial to the best interest of the service.
The Ombudsman also ordered the filing of cases against the respondents for violating Section 3( e) of Republic Act 3019 or the Anti- Graft and Corrupt Practices Act.
Its ruling stemmed from the accusation that the ERC officials gave undue favor to Manila Electric Co. ( Meralco) and its sister companies by exempting the entities from the competitive selection process for PSAs in 2016.