Friday, May 11, 2018

ERC approvals for power firms’ capex proposals top P1B


May 10, 2018 | 9:34 pm  

THE Energy Regulatory Commission (ERC) has approved applications by energy companies for capital expenditure (capex) projects amounting to around P1.15 billion as of April, the agency said on Thursday, citing its report to the President.
Agnes T. Devanadera, ERC chairperson and chief executive officer, said the past four months had been “truly challenging, but we were able to achieve significant accomplishments with the valuable contributions of the Commissioners.”
She described the accelerated disposition of cases and issues lodged before the agency in the past four months as “meaningful milestones” that had been achieved “with the continuing guidance and support from his (the President’s) office.”
In December, the Office of the Ombudsman ordered the suspension of four ERC commissioners, along with the previous ERC chairman, in connection with the revised implementation date of the rules governing competitive selection process (CSP), which it said favored a few power supply contracts.
In February, the Court of Appeals issued a 60-day temporary restraining order against the suspension. The same court granted in April a petition by the four commissioners for an injunction against the suspension, allowing them to continue working while the case against them is pending.
Aside from the P1,145,598,966.67 for seven capex approvals, which have corresponding permit fees of P8,591,992.25, the ERC said it had also approved 16 power supply agreements, 25 decisions and show cause orders.
The ERC said it has developed an online platform with the assistance of the World Bank to streamline and digitize work processes, including the filing of applications.
“The ERC issued policies that would reduce the retail rate of electricity at the distribution utility level, upgrade the standards for distribution management, and protect consumer welfare,” it said.
It cited the relevant issuances to include the rules on system loss cap for distribution utilities and the performance incentive scheme; a resolution adopting the amendments to the rules for the distribution for net settlement surplus; a resolution approving the Philippine distribution code’s 2017 edition; and rules supplementing the switching and billing process and adopting a disconnection policy for contestable customers.
It said the agency’s organizational structure and system had also been improved with the revamp of the department in charge of the hiring of personnel. — Victor V. Saulon

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