Graft charges filed against execs of Energy Regulatory Commission

Business World Online
Posted on November 11, 2014 10:23:00 PM

TWO PARTY-LIST lawmakers have filed graft charges against four Energy Regulatory Commission (ERC) officials for “gross negligence” by failing to protect consumers from the record-high power rate increase last year.

Bayan Muna Reps. Neri J. Colmenares and Carlos Isagani T. Zarate yesterday filed a complaint against ERC chair Zenaida Cruz-Ducut and Commissioners Alfredo J. Non, Gloria Victoria Yap-Taruc and Josefina Patricia M. Asirit for failing to release reports on last year’s hike in power prices and on the sudden Malampaya shutdown, which they said could have been used by plant operators as an excuse to hike power rates.

“A regulatory body like the ERC is required to promptly investigate acts highly detrimental to the public such as the unprecedented 2013 rate hike,” the complaint read. “Respondents’ failure to come out with the crucially needed report for an unreasonably long time is a dismal failure to fulfill her (Ms. Ducut) obligation and is highly injurious to public interest.”

In the 11-page complaint filed before the Ombudsman, the solons also scored the ERC officials for approving a P4.15-per-kilowatt-hour (kWh) increase in generation charge for December 2013, which brought the rates at P7.67 per kWh.

The Supreme Court, however, has stepped in to temporarily stop the imposition of the revised December rates.

Earlier, Mr. Colmenares called for Ms. Ducut to resign, in light of the reported collusion of power producers in December 2013, which is said to have caused the sudden spike in prices in the Wholesale Electricity Spot Market (WESM).

Ms. Ducut was appointed to the ERC in July 2008 and has earlier faced calls for her resignation. -- Melissa Luz T. Lopez source