House moves to amend EPIRA

The House of Representatives has moved to amend Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) as Marinduque Rep. Lord Allan Velasco, chair of committee on energy, started last week the hearing on the proposed measure to re-structure the Energy Regulatory Commission (ERC).

“An evaluation of the governance structure of the ERC would show that the powers and functions of the chairman of the commission and the chief executive officer are lodged in one person,” Velasco explained.

Velasco cited the need to reform the ERC, saying the current setup at the regulatory body does not foster a balance of power and accountability.

“Accountability and transparency in the workings of the commission should be paramount in order to engender trust and integrity among the industry players and the public,” the lawmaker stressed.

He pointed out that the ERC, as the country’s electric power regulator, has a crucial role in ensuring consumer protection and in enhancing the competitive operation of the electricity market.

House Bill 2099 seeks to enhance and strengthen the existing governance structure of the ERC by providing additional number, qualifications and requirements for ERC commissioners to ensure board efficiency and diversity; creation of three commission divisions, aside from the commission en banc, to ensure faster resolutions of cases, applications and promulgation of rules; and prohibitions and disqualifications for ERC commissioners and their relatives to prevent conflicts of interest.

It also proposes to divest the CEO functions from the chairperson and lodging these with the executive director; provide for a People’s Counsel; limit fiscal autonomy to augment the benefits of ERC officers and staff; and detail a Code of Ethics for the commissioners.

Velasco said members of the commission shall be composed of lawyers, accountants, system engineers and utility economists.

He added that their panel would be coming out with a committee report before Congress goes on a break this month.

The EPIRA law was created in 1991 to privatize the generation, transmission, distribution and supply of the power sector. Distribution and transmission were later declared as public utilities.

In line with the EPIRA, the Energy Regulatory Board was created as an independent and quasi-judicial regulatory body under Executive Order 172.