Published April 23, 2018, 10:00 PM By Myrna M.
Velasco
Following the injunctive relief
rendered by the Court of Appeals on the four Commissioners, it shall be
‘business as usual’ for the Energy Regulatory Commission – thus, the Department
of Energy (DOE) has been appealing to them to prioritize at least four key
measures that have direct impact on the consumers’ electric bills as well as on
the quality of service afforded them.
Two electricity tariff-related
measures shall be those on the ‘clear accounting’ of bill deposits paid for by
customers; and second is updating the regulatory reset on the performance-based
regulation (PBR) of power utilities.
Energy Secretary Alfonso G. Cusi
explained that rates under the PBR scheme had not been adjusted since the last
reset in 2015-2016, so even if there are regulated rates already going down, that
is not being enjoyed by consumers at this time.
“That (PBR regulatory reset) is a
priority and is also part of further unbundling of electricity rates that we
have been pushing for,” the energy chief noted.
He added that with the CA ruling
effectively stopping the suspension of the four Commissioners, “it shall be a
continuation of work for them,” therefore, Cusi noted they must already
efficiently flesh out what are the priority decisions the ERC must focus on.
In other markets like the United
States, the Energy Secretary can invoke ‘statutory authority’ upon the industry
regulator (in this case the Federal Energy Regulatory Commission) so these two
key agencies can be aligned when it comes to implementation of policies and
rules for the energy sector.
Aside from rate-related regulatory
works, Cusi similarly prompted ERC on the voluminous power supply agreements
(PSAs) still needing their action and final approvals.
“Why is it that PSAs are important?
Because we’re building up capacity and construction of plants will not commence
if they (ERC) can’t render approvals first…we don’t like to leave a legacy in
the industry in which power supply will be unstable,” Cusi stressed.
The energy chief similarly called on
the ERC to get its act on the legally impeded Retail Competition and Open
Access (RCOA) policy.
While the power industry’s retail
competition is currently smothered by a temporary restraining order (TRO) of
the Supreme Court, Cusi said the ERC must at least set a ‘forward direction’
harmonized with what the Department of Energy (DOE) has already framed as
‘cure’ to the questioned provisions of the RCOA rules.
The two government agencies are at
odds when it comes to the recommended ‘RCOA fixes’, but on industry’s
standpoint, the DOE is cornering better score on this sphere, especially upon
the lifting of the TRO in the high court.
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