ERC cites improvement in disposition of cases

MANILA, Philippines — The Energy Regulatory Commission (ERC) has cited improvements in the disposition of cases and issues in the first four months of the year despite the suspension of its four commissioners.

During the period, ERC issued four policies that would reduce the retail rate of electricity at the distribution utility level, upgrade the standards for distribution management, and protect consumer welfare.

These include the Rules on System Loss Cap for Distribution Utilities and the Performance Incentive Scheme; Resolution Adopting the Amendments to the Rules for the Distribution for Net Settlement Surplus (NSS); Resolution Approving the Philippine Distribution Code 2017 Edition; and Rules Supplementing the Switching and Billing Process and Adopting a Disconnection Policy for Contestable Customers. 

The ERC also approved 16 power supply agreements, seven capital expenditure (capex) applications totalling P1.15 billion, and 25 decisions and show cause orders as part of its ongoing zero-backlog project.

The commission developed an online platform, with the assistance of World Bank to streamline and digitize the eight work processes in the ERC, including the filing of applications. 

The agency also improved its organizational structure and system with the revamp of the department in charge of the hiring of personnel.

To fill vacant positions, the ERC teamed up with JobStreet Philippines to expedite the filling up of the 152 plantilla positions (technical and legal manpower complement).

An ERC disciplinary and investigating committee was also created which will be responsible for the conduct of formal investigation on disciplinary administrative cases against ERC employees.

Last December, the Office of the Ombudsman ordered for the suspension 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 DUs and ECs to undertake competitive bidding to secure PSAs with generation companies—was supposed to start on Nov. 7, 2015 but implementation was moved to April 30, 2016 to give power players a transition period to comply.

According to the ombusdman, the delay in implementation negated the policies contained under the Electric Power Industry Reform Act of 2001 (EPIRA) and CSP resolutions to protect the interests of consumers.

In February, the four commissioners were reinstated after the agency received the Court of Appeals’ (CA) issuance of a 60-day temporary restraining order (TRO) on the suspension of the ERC commissioners.

The CA  granted the petition of ERC commissioners for a preliminary injunction in April.