ERC to decide on Napocor rate petition Wednesday

The Energy Regulatory Commission (ERC) will decide on June 26 on the unbundling rate petition filed by the government-run National Power Corp. (Napocor).

ERC chief Fe Barin said they will decide "based on the information (culled) from the hearings."

In an interview with The STAR, Barin said Napocor’s petition will be the first of 140 applications for unbundled rates to be resolved by her office.

In the petition filed last Dec. 26, Napocor, along with other distribution utilities and electric cooperatives, asked for a 76-centavo unbundled rate.

It was still unclear if the ERC will grant the request, or scale down the amount.

Price watchdogs led by businessman-industrialist Raul Concepcion have asked the ERC to approve Napocor’s petition before resolving the similar pleas filed by the distribution facilities and electric cooperatives such as the Manila Electric Co. (Meralco) and the Davao Electric.

He said the decision on Napocor’s plea could be used as a basis for ruling on the other petitions.

Barin said they were carefully evaluating the applications to ensure that any decisions they make "will be for the best of both the consuming public and the utility."

Section 4 of the implementing rules and regulations of the Electric Power Industry Reform Act, also called Republic Act 9136, mandates the ERC to ensure that the industry players "functionally and structurally unbundle their respective business activities and rates."

The law provides that all power distribution firms should submit their applications not later than Dec. 26, 2001, while the ERC has six months to render judgment on the petitions.

The unbundled rate was designed to create a more transparent billing scheme.

The power utilities are enjoined to itemize their costs for generation, transmission and distribution to the end-users.

The setup was also meant to enable the ERC to have appropriate data to be used as basis for future rate hike adjustments.

The Pasig Regional Trial Court (RTC) rejected on Friday a petition for the issuance of a restraining order against the collection of the controversial purchased power adjustment (PPA), but respondent National Power Corp. (Napocor) said the decision is still not a cause for celebration.

"We have to go through hearings on the merits of a preliminary injunction," said lawyer Rainier Butalid, legal counsel of the state-run Napocor.

Although pleased with the ruling handed down by RTC Judge Alfredo Flores, Butalid said "the problem is still there."

He pointed out that Flores’ decision covered only the TRO plea, not the motion for the issuance of a writ of preliminary injunction filed by 40 opposition groups identified with ousted President Joseph Estrada.

Flores set the hearing on the preliminary injunction on July 5. – Donnabelle Gatdula