ERC is just implementing the law - Sanchez

Energy Regulatory Commission (ERC) Chairman Manuel R. Sanchez recently has categorically stated that the Commission is just doing its job of implementing the provisions of the Power Act as he asserted ERC’s jurisdiction over electric distribution utilities operating within the economic zones.

Chairman Sanchez made said statement in the light of recent newspaper reports that the Aboitiz Group was withdrawing from its contract to distribute power within the Subic Free Port as a result of the disagreement between ERC and SBMA on the interpretation of the law. Chairman Sanchez made it clear that Section 22 of the Power Act and Rule 7, Section 2 (d) of its Implementing Rules and Regulations (IRR) are explicit that the distribution of electricity shall be subject to regulation by the ERC. It made no distinction as to whoever is undertaking said distribution of electricity for it to be subject to ERC regulation.

Chairman Sanchez clarified that “ERC’s stand on the issue is not aimed at interfering with or forestalling any planned project of prospective investors in the said area and thus, should not be faulted for merely complying with its mandate as a regulator of electric distribution utilities.”

Chairman Sanchez further added that he had a talk with the Aboitiz Group and he was assured that it was not pulling out from the free port.

ERC maintains its position that that the manifest intent and purpose of the legislature is to place the entire distribution sector under ERC’s jurisdiction. It is high time that the regulation of the said sector be placed in the hands of only one independent regulatory body.

September 03, 2003