By Danessa Rivera (The
Philippine Star) | Updated May 22, 2017 - 12:00am
MANILA, Philippines - Resolution
over the recent shake up in the Energy Regulatory Commission (ERC) is critical
in the next 12 months to avert any possibility of derailment in the power
sector’s development, according to officials of major power industry players.
The ERC has been in the spotlight in
the past few months and as the country’s power regulator, this has been a major
concern for industry players because of uncertainty, Aboitiz Power Corp.
president and COO Antonio Moraza said.
“The whole industry is concerned,
there’s been talk, at least in the newspapers, of its abolition… if that
happens, then you know, everything is going to be delayed by two or three
years,” he said.
It started when an ERC director
Francisco Jose Villa Jr. committed suicide last November due to pressure to
approve procurement contracts and hire consultants without going through proper
bidding.
Because of the alleged corruption in
the ERC, President Duterte has threatened to abolish the agency if top
officials refuse to resign.
More recently, four commissioners
protested appointments made by the chairman Jose Vicente Salazar while he was
on official leave, which led to filing of cases over violations of Electric
Power Industry Reform Act (EPIRA), the Anti-Red Tape Law and CSC Memorandum
Circular No. 6 Series of 2005.
Salazar was then placed under a
90-day preventive suspension for deceiving Malacañang in filing his travel
authority and designating somebody without proper authority as OIC while he was
abroad.
The situation has caused uncertainty
in the ERC from performing its role as the country’s power regulator as well as
the sector’s future developments, AC Energy Holdings Inc. president and CEO
Eric Francia said.
“Any major uncertainty, and this is
a major uncertainty, it could dampen investor appetite or sentiment, which is
the last thing we need now,” he said.
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