Published July 6, 2019, 10:00 PM By Myrna M.
Velasco
The Energy Regulatory Commission
(ERC) has cemented a partnership with the league of American energy regulators
for the crafting of regulation framework for the Philippine gas sector.
The tie-up entered into by ERC is
with National Association of Regulatory Utility Commissioners (NARUC), an
aggrupation of energy regulators comprising various states in America.
Aside from the propounded gas
regulation framework, ERC also expects NARUC’s support in “establishing
procedures for expediting review and processes of power purchase agreements.”
ERC has long been criticized for its
very slow evaluation processes and its snail-paced frame of rendering decision
on power supply deals – which often delays power projects; and at times, could
also trigger power interruptions.
In a statement to the media, the ERC
explained “the exchange provided a platform for NARUC to share regulatory
expertise and strategies to promote gas market growth and adoption of best
regulatory frameworks.”
The partnership with NARUC,
according to the ERC, had been facilitated by the United States Agency for International
Development (USAID) – an American agency that has been aiding the Philippine
regulator on its work for decades already.
Nevertheless, since the deregulation
of the power sector in 2001, there’s really not much improvement that can be
vouched for on regulatory sphere in the energy sector. PSA approvals are still
very much delayed; and the regulator is not moving that fast on
performance-based rate setting’s (PBR) next regulatory reset.
In the gas industry, the United
States can look for highly favorable prospects in the Philippines – primarily
in the supply of gas from that shale-endowed market. Hence, that will explain
the high level of interest that America has been showing in shaping the
country’s gas regulatory framework.
US firms have not been aggressively
investing in the Philippine energy sector in recent years, but with the
opportunities they have been seeing in the gas sector, the world’s biggest
economy’s revived interest is manifest – even on strategies of dipping its hand
into the gas policymaking and regulation framing of the Philippines.
At this stage, ERC Chairperson Agnes
T. Devanadera asserted that the presentations made to them by the former
Commissioners of NARUC had been “truly beneficial for the ERC considering the
government’s thrust to provide a conducive environment through the issuance of
policies, plans and programs” for the gas sector.
Gas is an electricity generation
fuel being advanced by the Department of Energy (DOE) in meeting the country’s
need for immediate power capacity additions; as well as to address flexibility
concerns in the grid given the anticipated higher integration of renewables
into the country’s power grids.
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