Notes on the beat: Who will be ERC’s interim chief?

MANILA, Philippines — With the absence of the captain, who will take the helm at the Energy Regulatory Commission (ERC) and power through the turbulence?

Without an ERC chief, approval of power projects may be delayed – from power production, distribution to transmission. This is especially critical amid growing demand for electricity.

This uncertainty follows the Office of the Ombudsman’s preventive suspension “without pay” of ERC chairperson Monalisa Dimalanta, pending investigation of the administrative charges filed against her by the National Association of Electricity Consumers for Reforms Inc. (NASECORE).

In a six-page order dated Aug. 20, the anti-graft body said the suspension shall not exceed six months, unless there is a delay in the disposition of the case caused by Dimalanta herself.

“The evidence on record shows that the guilt of respondent Dimalanta is strong and the charges against her involve grave misconduct, grave abuse of authority, gross neglect of duty and conduct prejudicial to the best interest of the service,” the order stated.

The investigation stemmed from NASECORE’s complaint lodged in November 2023 with the Office of the Ombudsman over Dimalanta’s alleged act of permitting power distributor Manila Electric Co. (Meralco) to “regularly purchase electricity from the Wholesale Electricity Spot Market at higher prices.”

The ERC is keeping mum on the issue, but industry sources told The STAR that one of the four commissioners will temporarily take Dimalanta’s place while the Office of the Ombudsman’s order is in effect.

The current ERC board consists of commissioners Alexis Lumbatan, Catherine Maceda, Floresinda Baldo-Digal and Marko Romeo Fuentes, all of whom are Duterte appointees. Dimalanta, in turn, was appointed by President Marcos to the ERC in 2022.

Lumbatan was named to the ERC board in 2018, replacing Gloria Victoria Taruc, who finished a seven-year term.

Maceda, appointed in the same year, is a seasoned advocate for renewable energy, bringing extensive expertise to the industry.

Digal and Fuentes, meanwhile, were appointed in 2020, making the regulatory body a full commission following the retirement of Josefina Patricia Magpale-Asirit and Paul Christian Cervantes.

The Electric Power Industry Reform Act (EPIRA), the same law that created the ERC, states that the chairman shall be “a member of the Philippine Bar with at least 10 years of experience in the active practice of the law.”

Lumbatan, Digal and Maceda are all lawyers, while Fuentes is a certified public accountant.

Despite Dimalanta’s absence, the remaining commission members may still conduct a quorum to deliberate on cases, especially power supply agreements.

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.

A four-member quorum, however, might face challenges as a tie would result in no decisive vote, potentially causing delays in the regulatory process.

In a statement on Sunday, former energy secretary Vicente Perez said Dimalanta’s absence in the ERC “could negatively impact” the implementation of reforms and policies in the energy sector.

“Chair Mona has exemplified and embodied strong professionalism since taking the helm at the ERC and ensures that there is a strong balance between encouraging investment in the country’s power sector and protecting the interests of the consumers,” he said.

Perez, who now chairs Alternergy Holdings Corp., is hoping that the allegations against the incumbent ERC chief “will be resolved favorably.”

This is not the first time an ERC chairman has been suspended in recent memory.

In 2017, then-ERC chairman Jose Vicente Salazar was placed under preventive suspension over graft and corruption issues. He was eventually ordered dismissed by Malacañang at the time.

The ERC is a crucial regulator, as it is mandated to ensure “the adequate promotion of consumer interests and customer choice; promotes competition, encourages market development and penalizes abuse of market power. It is also responsible for enforcing the implementing rules and regulations of the EPIRA.”

What happens next is anybody’s guess.