ERC seeks emergency power during calamities

MANILA, Philippines — The Energy Regulatory Commission (ERC) is proposing changes to the Electric Power Industry Reform Act (EPIRA) to include an emergency power allowing it to respond to calamities without needing a quorum.

President Marcos earlier urged Congress to review EPIRA, saying the law must be revisited to determine whether the current energy policies are still applicable for the present time or if amendments are necessary.

“One of the things we’re studying is (the proposal) to give authority to either the chairman or a division of the commission, so that we can respond quickly,” ERC chairperson and CEO Monalisa Dimalanta told a press conference yesterday.

This special authority, Dimalanta said, would enable the commission to make decisions in response to natural disasters affecting the energy sector without the need of a collegial meeting.

Under EPIRA, the presence of at least three members of the commission shall constitute a quorum, and the majority vote of two members is needed to adopt any ruling, order, resolution or decision.

“Government agencies, including the ERC, need to respond more quickly (during calamities), and it’s challenging for the ERC to take action as a commission. The system is slow when all five members need to meet to address a situation,” Dimalanta said.

To ensure that this proposed special power is not abused, she said the limitation would be its purpose: “It has to be a response measure to an emergency.”

“Otherwise, we will all get frustrated because the process is designed to be slow since it requires a commission or collegial action,” she underscored.

Dimalanta is hoping to propose this measure within this year.

Just last week, the President ordered the ERC to study the immediate implementation of temporary relief on power bill payments in areas placed under a state of calamity due to Severe Tropical Storm Kristine.

The commission, however, was only able to issue proper directives to energy stakeholders such as distribution utilities (DUs) nearly two days later.

According to the order, energy utility providers in storm-hit areas could not disconnect power for consumers that use up to 200 kilowatt hours despite non-payment of electricity bills from October to December.

DUs are also directed to allow the staggered collection of payments for a period of at least six months from the issuance of the statement of account for each bill.

Asked about penalties for non-compliant firms, Dimalanta said a fine could be as low as P5,000 or a more severe penalty could involve revoking their franchise.

“If they repeatedly fail to comply, we can recommend to Congress that their franchise be revoked. There is a schedule and a progression of penalties, but of course, this will follow due process,” she added.