ERC resolves over 100 pending cases during 60-day TRO period

By Lenie Lectura -  April 10, 2018

https://businessmirror.com.ph/erc-resolves-over-100-pending-cases-during-60-day-tro-period/

The Energy Regulatory Commission (ERC) made good use of the 60-day temporary restraining order (TRO) issued by the Court of Appeals (CA) on the suspension order against four ERC commissioners, acting on more than a hundred pending cases during the period.

“We have exceeded 100 cases resolved because they have been processed and ripe for resolution by the commission,” ERC Chairman Agnes VST Devanadera said.

Last month, she added, the agency was targeting to release 80 to 90 rulings on pending cases. It turned out the agency has successfully exceeded its target.

She did not say if the applications of the Manila Electric Co. (Meralco) are included in the 100 cases that were acted upon by the commission, saying an announcement on the rulings made by the ERC would be out soon.

In February the appellate court issued a TRO against the suspension of four ERC commissioners in December 2017. The TRO will lapse on April 12. The ERC official earlier warned of a debilitating impact of the suspension order, saying this will put the operations of the agency in a severe paralysis.

As a collegial body, the presence of at least three ERC commissioners is needed to constitute a quorum to enable the commission to adopt any ruling, order, resolution or decision in the exercise of its quasi-judicial and quasi-legislative functions. Devanadera said earlier there are 162 petitions for power supply agreements pending before the agency. Of these, 132 cases involve electric cooperatives and 30 involve private distribution utilities.

The total value of these pending applications for ERC approval is close to P1.6 trillion. “This P1.588 trillion—not just millions, but trillions—include investments from both local and foreign entities. Without ERC action, the projects cannot proceed. The investors may get discouraged,” Devenadera had said.

When the TRO was issued, the commissioners immediately resumed work. During its regular commission meeting held from February 13 and 27, the ERC has approved the grant of Provisional Authorities to Operate (PAOs) and the issuance of Certificates of Compliance (COCs) to 15 generation companies (gencos).

The COCs are required to commercially operate a power plant or other facilities used in the generation of electricity, pursuant to Section 6 of Republic Act 9136, or the Electric Power Industry Reform Act of 2001, and Section 4 of the implementing rules and regulations of the Epira.

On the other hand, pending the issuance of the COC, the PAO may be issued by the ERC to enable a genco to operate its generation facility. The PAO shall be issued in the form of a notification to the genco and shall be valid for a period of six months from issuance thereof. The six-month validity period shall be included in the five-year term of the COC.

Devanadera said it is imperative for a genco to secure a COC or a PAO from the ERC prior to its commercial operation. The ERC, she stressed, recognizes the need for the immediate issuance of the COCs and PAOs to gencos to ensure a reliable and sustainable power supply, especially that there is an upsurge in power demand during the summer months.

“With the approvals of PAOs and COCs to generation companies, power supply will be augmented, as additional power will be injected into the grid. This will keep a stable power supply, especially during the coming summer months when the demand for electricity is expected to increase drastically.  That’s why we, at the ERC, are acting with dispatch to avert load shedding or  brownouts,” Devanadera said.