ERC GRIDLOCK MAY DISCOURAGE INVESTORS

THE impasse plaguing the Energy Regulatory Commission (ERC) after four of its commissioners were suspended may dissuade local and foreign investors to put their funds in the country, its chief said.

- man and CEO Agnes Devanadera said the paralysis resulting from recent suspension of Gloria Victoria Yap-Taruc, Alfredo Non, Jo Geronimo Sta. Ana for one year without pay might discourage foreign investors from coming to the Philippines and help the country develop its energy sector.

The power industry plays a major role in the Duterte administration’s “Build, Build, Build” infrastructure program, she added.

Based on the ERC’s initial assessment, all 135 power supply agreements (PSAs) pending before the regulatory body amounted to P1.2 trillion.

This amount would be used to bolster the government’s infrastructure program in the provinces.

The suspensions came after the four commissioners allegedly gave undue favor to Manila Electric Co. (Meralco) and its sister companies by exempting them from the competitive selection process (CSP) in 2016.

They were found guilty of conduct prejudicial to the best interest of the service.

The Ombudsman also ordered violating Section 3(e) of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act.

The suspensions “will have a substantial impact on the whole country and presents a dangerous regulatory risk that will severely environment of the country,” Devanadera had said.

The ERC needs at least three members to constitute a quorum, which would enable it to adopt any ruling, order, resolution or decision, as well as perform quasi-judicial and quasi-legislative duties.