AboitizPower joins call to resolve ERC vacuum

AboitizPower Corp. has joined calls urging government to resolve the leadership vacuum at the Energy Regulatory Commission (ERC).

In a statement, AboitizPower president and COO Antonio Moraza said a fair and functioning ERC is critical for the energy sector to work.

“A working regulatory body balances the welfare of the paying consumers, interests of the private investors, and the government’s desire for reliable and ample power,” he said.

“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,” the AboitizPower official said.

AboitizPower is working to add 500 megawatts (MW) of attributable capacity next year once it completes several hydropower and coal-fired power plants across the country.

These projects are on track and should be mostly online in the first half of 2018, Moraza said.

AboitizPower with its partner SN Power has completed the construction of the 8.5-MW Maris Canal hydro project in Isabela, while wholly-owned subsidiary Hedcor is nearing the completion of a 68.8-MW hydro plant in Manolo Fortich, Bukidnon.

The company is also completing the 340-MW Therma Visayas Inc. (TVI) baseload power plant in Toledo City, Cebu and the 400-MW Pagbilao 3 baseload power plant in Quezon, which are set to start commercially operating within the first quarter.

“We will be needing COCs (certificates of compliance) for projects that will be completed plus a PSA (power supply agreement) for TVI and as soon as possible for TMI (Therma Marine Inc.),” Moraza said.

TMI operates two power barges in Maco, Compostella Valley and Nasipit, Agusan del Norte that give Mindanao an additional boost of power supply whenever needed.

Last month, the Office of the Ombudsman ordered the suspension of ERC commissioners Alfredo Non, Gloria Yap-Taruc, Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana for one year without pay for delaying the conduct of competitive bidding in securing PSAs.

The competitive selection process (CSP) policy – which requires power utilities to undertake competitive bidding to secure PSAs with generation companies – was supposed to start in Nov. 7, 2015, but implementation was moved to April 30, 2016 to give power players a transition period to comply.

ERC chairperson and CEO Agnes Devanadera said the one-year suspension order on the four commissioners would paralyze the agency and the whole power industry with P1.59 billion worth of pending applications before the agency.

This is because the ERC acts as a collegial body and the presence of at least three members of the commission is needed to constitute a quorum to adopt any ruling, order, resolution, decision or other acts of the commission in the exercise of its quasi-judicial and quasi-legislative functions, Devanadera said.

Manila Electric Co. (Meralco) had already sought for the speedy resolution of the ERC vacuum. Without the regulatory functions of ERC, Meralco president Oscar Reyes said.

The power industry would be put at risk since it would not be able to ensure power supply and security moving forward.