‘ERC vacuum must be resolved’
Industry players are seeking a speedy resolution of the suspension order of four commissioners of the Energy Regulatory Commission (ERC) that could leave a vacuum in the power sector and put consumers at a disadvantage.
The Office of the Ombudsman ordered commissioners Alfredo Non, Gloria Yap-Taruc, Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana to be suspended for one year without pay over the delay in the conduct of competitive bidding in securing power supply deals.
In a statement, the Philippine Independent Power Producers Association Inc. (PIPPA) expressed support for the ERC, noting the suspension of the four commissioners would prevent the agency from fulfilling its duties.
It said the energy industry needs a fully functional commission in order to effectively implement their mandate in accordance with the Electric Power Industry Reform Act (EPIRA) of 2001.
“Without a working commission and putting a pause on the important work of the ERC, we will find ourselves without the needed approvals for PSAs (power supply agreements), connection agreements, price determination regulation, compliance certificates and licenses,” PIPPA said.
“These are all dependent on the ERC and will negatively impact everyone from the generators, distribution utilities and ultimately to the consumers. As such, we cannot afford any delay on these activities, as it will be detrimental not only to the industry but to each and every consumer who relies on energy security,” it said.
PIPPA said the issue is hoped to be resolved “quickly and fairly, so that the entire industry can move forward and work to achieve energy security, reliability, accessibility and affordability for all consumers.”
Meanwhile, consumer advocacy group Laban Konsyumer Inc. (LKI) said the four suspended commissioners should resign to avoid paralyzing the whole agency.
“We respectfully appeal to Commissioners Non, Sta. Ana, Asirit and Taruc to discern with humility that public service and interest is over and above legal and personal interests,” LKI president Victor Dimagiba said.
“The ERC as an institution must continue to fulfill its mandate under the Electricity and Power Industry Reform Act or EPIRA. Its operation should not be paralyzed. Their duty to the public is clear. Resignation now is an honorable act,” he said.
The group also asked power players to refrain from taking advantage of a vacuum in the ERC through unwarranted spike in the electricity spot market.
“All stakeholders and the regulators must ensure and safeguard consumers’ access to steady supply of electricity at reasonable prices,” Dimagiba said.
The competitive selection process (CSP) was supposed to start on Nov. 7, 2015, but the ERC moved the policy’s implementation to April 30, 2016, negating the policies contained under EPIRA and CSP resolutions to protect the interests of consumers.
The CSP policy requires distribution utilities (DUs) and electric cooperatives (ECs) to undertake competitive bidding to secure PSAs with generation companies.
This has favored some power players, as PSAs were filed by Manila Electric Co. (Meralco) and 90 other applicants on April 30, 2016.
Sen. Sherwin Gatchalian, chairman of the Senate committee on energy, called on President Duterte to appoint interim commissioners for the ERC to ensure that the work of the agency would not be interrupted.