Business World Online
Posted on February 09, 2014 08:42:48 PM
IN VIEW of the recent calamities that have affected parts of the country, the Energy Regulatory Commission (ERC) has moved to guide distribution utilities (DUs) in implementing capital expenditure projects due to similar unexpected events.
In a resolution published on Saturday, the ERC said it has taken judicial notice of the recent crisis in Zamboanga and the natural calamities that affected certain distributors.
"The Commission recognizes the destruction and damage caused by these incidents, which affected the concerned distribution utilities’ systems and operations," the resolution, dated Nov. 15, 2013, stated.
"The Commission sees the need for said distribution utilities to prioritize, as well as utilize all their available resources, in restoring electricity within their respective franchise areas, by immediately implementing the necessary force majeure and fortuitous event capital expenditure projects," it added.
Force majeure, the regulator explained, refers to a typhoon, storm, tropical depression, flood, drought, volcanic eruption, earthquake, tidal wave or landslide. Meanwhile, a fortuitous event covers acts of sabotage, declared or undeclared war, revolution, and riot.
The ERC reiterated that, as a guidance, all distributors can immediately proceed with the implementation of their capital expenditure projects caused by force majeure or fortuitous events.
But for the ERC to be able "to assist the said DUs in responding to the needs of their end-consumers," the regulator required submission of the following information within 120 days of the immediate effectivity of the resolution (upon publication):
• information on the extent of the damage caused to a distributor’s system by the unfortunate events;
• list of capital expenditure projects that they have implemented to repair and restore their system as a result of such events;
• whether or not they will be updating or revising any pending capital expenditure and loan application; and
• any other information that will enable the commission to assist the utilities.
The ERC said reiteration of these guidelines is necessary because such unforeseen circumstances may require a revision of affected distributors’ existing capital expenditure plans and loan applications that are pending with the commission.
In September last year, a three-week standoff of between rebels and government forces in Zambonga City resulted in the deaths of dozens of security forces, Moro National Liberation Front fighters and civilians. It displaced more than 120,000 individuals from at least six heavily affected villages.
Among the natural calamities that hit the country last year, typhoon Yolanda (international name: Haiyan) has been perceived as the most destructive.
Yolanda -- described as the strongest typhoon to ever make landfall -- whipped through the central Philippines and parts of southern Luzon on Nov. 8.
It flattened Eastern and Western Samar and Leyte where the bulk of fatalities were recorded.
Last month, the National Disaster Risk Reduction and Management Council (NDRRMC) said the official government death count from the storm has already risen to 6,190.
The number of people missing and injured remains at 1,785 and 28,626, respectively.
Yolanda also destroyed 550,928 houses and caused damage to at least 589,404 million others. Damage cost to properties and farms based on the NDRRMC report is estimated to have reached P36.69 billion.
The National Electrification Administration has reported that the typhoon left some P4.92 billion worth of distribution facilities damaged. -- Claire-Ann Marie C. Feliciano source
"The Commission recognizes the destruction and damage caused by these incidents, which affected the concerned distribution utilities’ systems and operations," the resolution, dated Nov. 15, 2013, stated.
"The Commission sees the need for said distribution utilities to prioritize, as well as utilize all their available resources, in restoring electricity within their respective franchise areas, by immediately implementing the necessary force majeure and fortuitous event capital expenditure projects," it added.
Force majeure, the regulator explained, refers to a typhoon, storm, tropical depression, flood, drought, volcanic eruption, earthquake, tidal wave or landslide. Meanwhile, a fortuitous event covers acts of sabotage, declared or undeclared war, revolution, and riot.
The ERC reiterated that, as a guidance, all distributors can immediately proceed with the implementation of their capital expenditure projects caused by force majeure or fortuitous events.
But for the ERC to be able "to assist the said DUs in responding to the needs of their end-consumers," the regulator required submission of the following information within 120 days of the immediate effectivity of the resolution (upon publication):
• information on the extent of the damage caused to a distributor’s system by the unfortunate events;
• list of capital expenditure projects that they have implemented to repair and restore their system as a result of such events;
• whether or not they will be updating or revising any pending capital expenditure and loan application; and
• any other information that will enable the commission to assist the utilities.
The ERC said reiteration of these guidelines is necessary because such unforeseen circumstances may require a revision of affected distributors’ existing capital expenditure plans and loan applications that are pending with the commission.
In September last year, a three-week standoff of between rebels and government forces in Zambonga City resulted in the deaths of dozens of security forces, Moro National Liberation Front fighters and civilians. It displaced more than 120,000 individuals from at least six heavily affected villages.
Among the natural calamities that hit the country last year, typhoon Yolanda (international name: Haiyan) has been perceived as the most destructive.
Yolanda -- described as the strongest typhoon to ever make landfall -- whipped through the central Philippines and parts of southern Luzon on Nov. 8.
It flattened Eastern and Western Samar and Leyte where the bulk of fatalities were recorded.
Last month, the National Disaster Risk Reduction and Management Council (NDRRMC) said the official government death count from the storm has already risen to 6,190.
The number of people missing and injured remains at 1,785 and 28,626, respectively.
Yolanda also destroyed 550,928 houses and caused damage to at least 589,404 million others. Damage cost to properties and farms based on the NDRRMC report is estimated to have reached P36.69 billion.
The National Electrification Administration has reported that the typhoon left some P4.92 billion worth of distribution facilities damaged. -- Claire-Ann Marie C. Feliciano source
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