Friday, June 17, 2016

ERC aims to speed up anti-competition hearings



http://www.bworldonline.com/content.php?section=Economy&title=erc-aims-to-speed-up-anti-competition-hearings&id=129144

THE ENERGY Regulatory Commission (ERC) has issued a resolution to divide itself into two core groups when it hears anti-competition cases in order to speed up their disposition.


“[I]n view of the number of Anti-Competition cases now pending before the Commission and in order to secure an orderly, efficient and expeditious disposition of these cases,the Commission deems it appropriate to divide the Commission into two (2) core groups and to designate the Commissioners to act as presiding officers, for and in the conduct of hearings,” reads ERC Resolution No. 14, Series of 2016.

ERC said it had received 13 complaints from its investigatory unit for violation of Section 45 of Republic Act No. 9136 -- or the Electric Power Industry Reform Act of 2001 -- or the commission of Anti-Competitive Behavior.

Under the resolution, ERC Chairman Jose Vicente B. Salazar sitting in the two core divisions. A commissioner will be designated as the presiding officer in his absence.

Commissioners Alfredo J. Non and Josefina Patricia A. Magpale-Asirit will sit in the first division, while Gloria Victoria C. Yap-Taruc and Geronimo D. Sta. Ana will sit in the second division. The 13 anti-competition cases will be divided equitably between the two divisions.

The ERC said the assignment of cases to a division will be through raffle, to be presided by the commission staff who will be under the direct control and supervision of the chairman. The raffle of the cases will be made open to the public, and notice will be sent by the commission staff to the parties before the date of the raffle.

In the hearing of the cases, the chairman acts as the presiding officer ex officio, or by virtue of his position or status. In his absence, the senior commissioner in each division acts as presiding officer, and in the latter’s absence, the junior commissioner acts as the substitute presiding officer.

The chairman and the four commissioners will be notified of the hearings in all cases and be furnished with all the filed pleadings.

“Nothing precludes them from attending and/or participating in the hearings of all the anti-competition cases,” the ERC said.

“All final orders, resolutions and decision in these Anti-Competition cases shall be rendered by the Commission subject to the pertinent requirements under Section 38 of Republic Act No. 9136,” the resolution said.

The ERC has also resolved to authorize the chairman to issue any and all necessary orders involving the resolution.

Separately, the ERC granted provisional authority to Manila Electric Co. (Meralco) and 1590 Energy Corp. to implement their interim power supply agreement (IPSA).

The IPSA covers a firm contact for 170 megawatts between Feb. 26 and July 25, from 10:00 a.m. to 9:00 p.m. Mondays to Saturdays, while a second agreement covers for a non-firm IPSA between July 26, and Feb. 25, 2017 for the same days and hours.

In its filing with the ERC, Meralco said that based on its power supply-demand outlook for 2016, it foresees a significant capacity deficit in its portfolio for the March to October 2016.

“The deficit is due to scheduled maintenance shutdowns of its contracted generating units as well as possible occurrences of forced plant outage,” it said.

Meralco said that if the agreement is not implemented during the stated periods, it will be constrained to source from the Wholesale Electricity Spot Market (WESM), where prices are volatile, especially during summer months.

“This can be further aggravated and would likely result in higher WESM prices. The higher prices can be attributed to the very tight supply under thin reserve margin conditions during said period,” it said.

The ERC has also granted provisional authority to Cotabato Light and Power Co., Inc. and Therma Marine, Inc. to implement their energy supply agreement.

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