ERC issued PAs in rate reduction and other applications affecting public interest

The Energy Regulatory Commission (ERC) issued provisional authorities to 118 electric cooperatives to reduce their rates due to loan condonation.

“We issue provisional authorities pertaining to rate reduction, and other applications that affect public interest,” Chairman Albano said.

Aside from the provisional authorities issued on rate reduction, the Commission issued PAs on the issuance of certificate of public convenience and necessity, authority to construct substations and expansion projects, authority to implement rate discount schemes, authority for approval of power purchase agreement and authority to incur loans, among others.

Just recently, ERC issued a PA to Cagayan Electric Company to allow it to obtain a $4 million financing convertible into grant from World Bank-IFC, for its 950kW photovoltaic grid-connected pilot project. A provisional authority was also issued for the construction of a substation in San Fernando, Pampanga for the provision of electricity.

“In arriving at our decision, we keep in mind our duty to balance the interest of investors with that of the consumers. We have to make sure that investors get a fair return on their capital taking into consideration the limits provided by law. On the other hand, we have to make sure that the welfare of the consumers is protected. It is through these PAs that we convey our decisions,” says ERC Chairman Rodolfo B. Albano.

January 26, 2004