Red tape at ERC costing consumers P34 billion — Senate panel

MANILA, Philippines — Red tape at the Energy Regulatory Commission (ERC) is costing consumers P34 billion, the Senate committee on energy found out yesterday during a hearing.

Sen. Sherwin Gatchalian, committee chairman, took to task the embattled ERC for several delays in the approval of stranded contract costs (SCC) and stranded debts (SD) rate applications of the National Power Corp. (Napocor).

According to the Power Sector Assets and Liabilities Management Corp. (PSALM), the various delays have resulted in an additional P34.78 billion of costs to be shouldered by consumers, equivalent to a power rate increase of P0.1973 per kilowatt hour (kwh).

“After all of your controversies, you will burden Juan dela Cruz with P34 billion in costs because of delays. This is absolutely unacceptable,” Gatchalian told ERC.

Lawyer Krisha Buela of ERC responded that the regulatory agency was currently conducting a review of its procedures and process flows to improve their work.

“I’m telling you that there’s a problem in your procedures. It’s a P34-billion problem to be shouldered by the Filipino people,” Gatchalian replied.

After the hearing, the senator reiterated the need to pass the proposed ERC Governance Act to foster transparency and accountability in the deliberations and decisions of the country’s independent power sector regulator.

Gatchalian is expected to sponsor the substitute version of the bill within the next months.

Meanwhile, the Senate committee is studying the possibility of using the P204-billion Malampaya Natural Gas Project to reduce the universal charge paid by end-consumers on their monthly electricity bills, which could result in household savings as high as P2,033.76 annually. – With Danessa Rivera