ERC to embark on a project on good governance

In conjunction with the Energy Regulatory Commission’s (ERC) thrust to promote good governance, the Commission will coordinate with the Institute of Corporate Directors (ICD) in introducing a good governance program for all Electric Distribution Utilities (Electric Cooperatives and Private Utilities alike).

ICD started as a project of the Foundation for Community-Building in the Asia-Pacific, and is now a separate organization headed by former Finance Secretary Dr. Jesus Estanislao. It focuses on promoting good governance reforms in modern corporations and institutions with public interest.

In this regard, the ERC will start working with the ICD in formulating, designing and implementing the above-mentioned program for the Commission and the Electric Utilities.

“The Commission and ICD believe that providing training or orientation to these Distribution Utilities on the guiding principles of good governance (i.e. fairness, transparency and accountability) will redound to the benefit of the consumers,” ERC Chairman Manuel R. Sanchez said.

“We urge the executives, directors and heads of Distribution Utilities to actively participate in this program, and thus instill good governance policies in their professional practice,” he added.

Chairman Sanchez will also propose another component of this project which will focus on Corporate Social Responsibility. It has been a common practice in many countries and multi-national companies for corporations to give back to the community part of their profits for community building activities such as construction of deep wells, hospitals and classrooms, medical missions, charities, etc. The Chairman encourages the Electric Distribution Utilities to participate and contribute in the improvement/development activities of the communities where they operate.

November 20, 2003