ERC orders DU Board members to attend seminar on corporate good governance

The Energy Regulatory Commission (ERC), in a resolution dated June 23, 2004, ordered the Board of Directors of all distribution utilities to undergo a training seminar on corporate good governance. The directive is pursuant to the Code of Corporate Governance.

The Code embodies the policy of the State to actively promote corporate governance reforms aimed to raise investor confidence, develop capital markets and help achieve a high sustained growth for the corporate sector and the economy.

Section 2(f) of Republic Act No. 9136 (Electric Power Industry Reform Act), likewise, echoes the policy of the State to protect public interest as it is affected by the rates and services of electric utilities and other providers of electric power.

“The board of directors of distribution utilities will surely gain a fresh outlook in policy making when they undergo the training seminar. It will equip them with the guiding principles in achieving the obligation of their respective utility firms to ensure fair, transparent and non-discriminatory treatment of all stakeholders as they provide quality, reliable, secure, and affordable supply of electricity,” ERC chairman Rodolfo B. Albano, Jr. explained.

DUs should take this opportunity to fine tune their service guidelines to enhance the positive image of their organization,” the ERC chief added.

There are a total of 138 DUs in the country composed of 119 electric cooperatives (ECs), 16 private utilities and 3 public utilities.

ERC is in the process of accrediting institutions that could provide for training on corporate good governance. The list of accredited trainors will soon be made available to the power distribution firms.

As embodied in the resolution, incoming and newly elected board of directors of DUs have six (6) months to comply with the Commission’s directive. Furthermore, the president of DUs shall submit to the ERC a compliance report containing details on its BODs, remaining tenure, and date of attendance to a seminar on corporate good governance.

July 7, 2004