ERC to FND: We need to balance and protect the interest of all stakeholders

ERC Chairman Manuel R. Sanchez stressed “the need for the Commission to balance and protect the interest of all stakeholders.” Sanchez was reacting to the remarks made by Foundation for National Development (FND) Chairman Antonio Hombrebueno that “ERC is wasting time on petty clearances and simple procedural requirements in the face of an impending power crisis.”

“Mr. Hombrebueno must realize that ERC is mandated by law to regulate and promote the development of the Philippine electric power industry without losing sight of its duty to protect the interest of consumers as well,” the ERC chief pointed out. “Any investment or expansion plan of any electric utility will result in capital expenditures that will eventually be passed on to consumers. This must be monitored and evaluated, hence the need forclearances and adherence to simple procedural requirements,” he added.

“Mr. Hombrebueno need not worry about delays in the much needed expansions to avert any power shortage. The Commission immediately issues provisional authority for such expansions once an application is received which is promptly acted upon. The concerned utility can then quickly proceed with its expansion plans to ensure its unhampered operations,” the ERC chairman said. He added that “any infraction of the law committed by a power firm is treated separately and not tied up with applications for expansion.”

Sanchez also said that the FND chairman is misguided in saying that ERC is trying to shore up its funds by requiring clearances. “The operating funds of the Commission come from the national government. The collected fees are remitted to the national treasury and we are not authorized to spend a single centavo from these funds,” the chairman stressed.

It was finally stressed by the ERC Chairman that Commonwealth Act No. 146, which is updated when the need arises, is not an antiquated law. The Commission, as well as its predecessor agencies is duty bound to enforce its provisions especially if it is beneficial to the stakeholders of the electric power industry.

August 14, 2003