AboitizPower urges restoration of ERC functions

ABOITIZPOWER Corp., the electricity subsidiary of conglomerate Aboitiz Equity Ventures Inc., on Wednesday joined calls for the Duterte administration to restore the Energy Regulatory Commission’s ( ERC0 regular functions.

“We are appealing to the national leadership to resolve the ERC issue as soon as possible, so the commission can get back to work and act on many pending issues awaiting their decision,” AboitizPower President and COO Antonio Moraza said in a statement.

According to him, a working regulatory body balances the welfare of consumers, interests of private investors, and the desire of the government to have reliable and sufficient power supply.

“A fair and functioning ERC is critical for the energy sector to work,” Moraza said.

His statement came after Manila Electric Co. ( Meralco) made the same appeal earlier this month.

Meralco President Oscar Reyes told reporters then that restoring the ERC’s functions is “quite critical,” as there are investments, power- plant construction projects, supply of different distribution utilities and electric cooperatives, and other pressing matters pending before the agency.

Noting that the energy sector is heavily regulated, Reyes said “its operations, future and service to customers [ are] largely affected by the ability of” the ERC “to function effectively.”

He expressed concern that, with that ability compromised, it may put at risk the sector’s capacity to assure customers of a reliable and secure power supply.

In a Senate energy committee hearing last week, ERC Chairman and CEO Agnes Devanadera warned of massive blackouts across the archipelago as the regulator needs commissioners to act on rate petitions that may hinder power distribution utilities from selling electricity.

She said pending applications before the ERC amount to P1.588 trillion, including the equivalent monetary value of capital expenditures ( capex) of P384.5 billion, pointto- point transmission of P2.2 billion, sale of subtransmission cases of P0.9 billion, and the accrued interest of feed- in tariff allowances ( FiT- all) of P526.7 million.

The ERC chief also said they were not able to decide on the contracts covering 5,493.38 megawatts ( MW) of supply.

These include 43 new certificates of commerciality (COC) tantamount to 2,977.89 MW, renewal of 47 expired COCs equivalent to 1,971.49MW, and 29 expired power supply agreements ( PSAs) covering 544MW in supply.

JORDEENE B. LAGARE