Lawmaker calls for reforms to resolve ERC delays

August 17, 2024 | 12:00am

MANILA, Philippines — Organizational reforms in the Energy Regulatory Commission (ERC) are necessary to improve regulatory capabilities and fast track the resolution of cases, a lawmaker said.

APEC Rep. Sergio Dagooc said there is a need to strengthen ERC’s regulatory functions to resolve slow approval process, which has been the subject of complaints from stakeholders.

“We must overhaul the ERC’s system to address its inefficiencies and excessive delays, which have caused significant harm to the energy industry,” he said.

The House committee on energy started its deliberations on the proposed changes in the Electric Power Industry Reform Act (EPIRA), focusing on revitalizing the ERC to enhance efficiency.

This followed President Marcos’ call to Congress to review the EPIRA Law in an attempt to bring down the cost of electricity in the country.

Dagooc criticized the ERC for delayed approvals on the critical projects of the National Grid Corp. of the Philippines and the applications from generation companies and distribution utilities.

The NGCP earlier said that the ERC’s slow approval of its rate application has continued to adversely impact its projects.

The rate-reset process sets the rules and parameters for the investment, operations and pricing mechanisms of the NGCP for a five-year period.

It recently energized the 500-kilovolt Mariveles-Hermosa-San Jose project and the 230-kV Cebu-Negros-Panay backbone project.

The grid operator invested about P87.9 billion for the two projects, but the ERC only allowed the recovery of less than one percent of the costs or P201.78 million.

Further, Dagooc also criticized the ERC for failing to penalize generation firms responsible for the massive power outage on Panay Island, which affected several provinces and cities in the Visayas.

“It’s been months since that notorious power outage, yet the ERC still hasn’t released its findings. It seems that they  want the Filipino people to forget about the incident and let the responsible generation companies go unpunished,” the lawmaker said.