ERC penalizes erring DUs
The Energy Regulatory Commission (ERC) penalized four (4) electric distribution utilities (DUs) for breach of various regulatory laws. "The Commission assures the electricity providers and the public of its commitment to enforce regulatory laws, rules and guidelines", ERC Chairman Rodolfo B. Albano, Jr. stressed.
Ibaan Electric Engineering Corporation (IEEC) in Ibaan, Batangas, was fined by the ERC for failure to provide adequate safeguard and comply with the safety standards as required by its Certificate of Public Convenience and Necessity (CPCN) and ERB Resolution No. 95-21, which could have averted an accident during a typhoon in 2003. Mactan Electric Company (MECO) in Cebu and Bauan Electric and Light System (BELS), owned by the local government of Bauan, Batangas, were both penalized for the late submission of required annual reports. Such reports serve as statistical basis for ERC in formulating regulatory policies. On the other hand, Manila Electric Company (MERALCO) was likewise charged for failure to obtain Commission approval requisite to the disposal of properties. A total of PhP 263,750.00 is expected to be paid by the four (4) DUs to the national treasury via the Commission.
Compliance with pertinent laws, orders, rules and regulations promulgated by the ERC is continuously monitored by the Commission's Investigation and Enforcement Division of its Regulatory Operations Service. Non-compliance is meted out with penalty in the amount prescribed corresponding to the violation and in some instances, revocation of the distribution utility's Certificate of Public Convenience and Necessity (CPCN), or both.
Awaiting final resolution of cases for various regulatory infractions are fifteen (15) other DUs and if found guilty, would translate to nearly PhP 2 Million into public funds. Such penalties are borne by the DUs and are not passed on to the consumer.
September 15, 2004