Palace to ensure continuous ERC operations

Malacañang allayed fears that the suspension of the commissioners of the Energy Regulatory Commission (ERC) would paralyze the power regulator and lead to blackouts.  

 

Presidential spokesman Harry Roque said Tuesday the administration is studying ways to prevent the disruption of the operations of ERC, which is mandated to ensure reasonable electricity prices and to promote competition in the power industry. 

 

He said one of the possible options is the appointment of officers in charge (OICs) that would take over the functions of the four suspended commissioners.

 

"When the news of the suspension broke out, the Executive Secretary started studying the possible options,"  Roque said in an interview with radio station dzMM.

 

"The declaration of (Chief Presidential) Legal Counsel (Salvador) Panelo regarding OICs is one of the possibilities. What is clear is the ERC cannot be paralyzed because the body plays a very important role," he added. 

 

Roque assured the public that President Duterte would do something to avert a power sector paralysis. 

 

Last month, the Office of the Ombudsman suspended the four ERC commissioners for a year over allegedly anomalous power supply contracts with 38 firms.

 

Commissioners Alfredo Non, Gloria Victoria Yap-Taruc, Josefina Patricia Asirit, and Geronimo Sta. Ana were found administratively liable for "conduct prejudicial to the best interest of the service aggravated by simple misconduct and simple neglect of duty."

 

Former ERC chairman Jose Salazar was also found liable for the same offense but was only slapped with a fine equivalent to six months worth of his salary. President Duterte dismissed Salazar last October for allegedly trying to influence the ERC’s procurement process to favor a supplier and for issuing orders to renew power purchase deals without the approval of other commissioners.

 

The Ombudsman said the commissioners gave unwarranted benefits to the Manila Electric Co. and other companies by exempting them from the coverage of the competitive selection process (CSP) requirement which was already in effect. The CSP rule requires power firms to conduct public biddings in sourcing their power supply to ensure reasonable rates for consumers.

 

The Ombudsman has also ordered the filing of graft cases against Salazar and the four commissioners. 

 

ERC chair Agnes Devanadera has warned that the suspension of the four commissioners could result in a "severe paralysis" that could lead to power outages. She noted that there are P1.59 billion worth of power service applications awaiting action of the power regulator. 

 

But Roque said the Ombudsman resolution could not be set because of fears that it could paralyze the ERC. 

 

"The President will do something about it. But I would like to clarify that we are not in favor of setting aside the suspension order just because we don’t want to paralyze (the ERC)," the presidential spokesman said. 

 

Roque said the Office of the Executive Secretary is studying the basis of the suspension to determine whether the President can already dismiss them.