Brownouts feared as ERC commissioners serve one-year suspension

With the four Energy Regulatory Commission (ERC) commissioners all serving a one-year suspension, chairperson Agnes Devanadera admitted the possibility of brownouts in different parts of the country as several rate applications of distribution utilities worth P1.588 trillion remain pending for approval.

At the Senate energy committee hearing Tuesday, Devanadera said the ERC will do the “mapping” of areas in the country which may be affected by possible brownouts.

According to Devanadera, the commission has not met since the suspension of all four commissioners last month. She explained that for the ERC to act as a collegial body, at least three members of the commission is needed to constitute a quorum.

“It was confirmed by logical conclusion that if ERC is not able to issue these authorities and approvals, mahihinto 'yung supply. So we call it brownouts, blackouts on rotational basis, merong effect,” she said in an interview.

“Kailangan nila nung COC (certificate of compliance) na issued ng ERC sa mga new applicants or hindi sila makaka-participate sa market. 'Yung iba, hindi makakapag-supply ng electricity dahil hindi pa natatapos, wala ng nabibigay sa kanila na COC at walang nagfi-fix ng rate,” she explained.

Senator Sherwin Gatchalian, chairman of the Senate committee, feared that the brownouts could happen as early as March. Gatchalian has asked the ERC to submit its contigency plans.

“I think ang pinakadelikado dito ay 'yung pagpasok ng March…Mainit eh, lahat mag-a-aircon, mag-e-electric fan at kung tumaas ang demand ng kuryente at walang mga bagong kontratang maaprubahan, magkakaron  talaga ng problema pagdating ng summer,” Gatchalian said.

“We have to manage the consequences as much as possible. I would like to urge ERC to review pending rate contracts, kung saan itong mga lugar na ito,” he added.

For his part, Energy Undersecretary Felix William Fuentebella said the Department of Energy (DOE) is willing to “assist” the ERC.

“What the Secretary is looking into is how the DOE can assist them… Para ma-fill in 'yung nakikita nating vacuum,” Fuentebella said in an interview.

DOE Secretary Alfonso Cusi has already sent a letter to President Rodrigo Duterte last month asking the chief executive to appoint temporary commissioners.

Two of the four commissioners—Gloria Victoria Yap-Taruc and Alfredo Non—are set to retire in July this year, according to Devanadera. The other two—Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana—will retire in 2020.

“Some of the situations that we think may happen are first-time situations that do not have jurisprudence or previous decisions of ERC upon which to base how we should deal with that problem or that situation,” Devanadera said.

“Second to the fact that the chair alone cannot deal with these situations that we are now envisioning,” he added.

Devanadera explained that for the ERC to act as a collegial body, at least three members of the commission is needed to constitute a quorum.

Last December, the Office of the Ombudsman ordered the one-year suspension of all four ERC commissioners in connection with the alleged anomalous transactions involving power generation companies affiliated with the Manila Electric Co. (Meralco).

The Ombudsman ordered the suspension, without pay, of Commissioners Yap-Taruc, Non, Magpale-Asirit, and Sta. Ana.

The order leaves former Solicitor General and incumbent chairperson Devanadera as the sole official in the ERC. —MDM/KG, GMA News