House bill to restructure ERC leadership to be passed this year, lawmaker says

By Lenie Lectura - July 19, 2018

https://businessmirror.com.ph/house-bill-to-restructure-erc-leadership-to-be-passed-this-year-lawmaker-says/

A bill seeking to restructure the Energy Regulatory Commission (ERC) by expanding the number of commissioners to 17 could be passed into law within the year.

House Energy Committee Chairman Rep. Lord Allan Jay Velasco of Marinduque said on the sidelines of “Promoting Growth through Policies and Technologies” forum that he is hopeful that the proposal would be approved soon.

“It’s with the TWG [technical working group]. We will try to have it approved within the year. There’s another bill authored by the Speaker, and we agreed to merge the two bills, and hopefully get this bill passed and signed into law before the year ends,” Velasco said.

House Speaker Pantaleon D. Alvarez proposed the replacement of the ERC with another body that will be attached to the Department of Energy.

“The Speaker filed a bill that seeks to abolish the ERC, and putting it under the DOE. But we talked and I told him that the regulator should be an independent commission so he agreed for the two bills to be put together. We are reviewing it now,” Velasco said.

Velasco’s bill, if approved, is expected to fast-track regulatory processing of all cases since the number of commissioners will be increased to 17, including the chairman, from the current five.

“It is meant to hasten the decision powers of the ERC because it takes time for them to issue decisions. So, I want to increase the number of commissioners to 16  and pattern it to the Supreme Court with the creation of three divisions,” Velasco said.

He added that the proposed 16 commissioners would still have a fixed term of seven years, but the chairman would serve at the pleasure of the president.

“The commissioners must be composed of lawyers, engineers, accountants, economist to name a few,” Velasco said.

The bill also calls for fiscal autonomy to boost the morale of ERC employees.

ERC Chairman Agnes VST. Devanadera earlier welcomed the creation of the body that will study the proposed bills.

She also vowed to step up the regulation of the electric power industry and, if necessary, amend certain ERC rules to ensure that the consumers’ welfare are promoted and protected.

“We are acting on the electric power industry’s plea to strengthen the ERC. We recognized that we have entered a new regime where consumer benefit consciousness has to be given utmost consideration.  In this connection, I have directed the review of all ERC rules with direct impact on electricity consumers, and improve thereon, if warranted,” Devanadera said.