ERC Extends Current Assignment of Regulatory Reset Experts
The Energy Regulatory Commission (ERC) extended the assignment of Parsons Brinckerhoff (PB) Associates, under Resolution No. 52, Series of 2006 issued on 19 October 2006 as Regulatory Reset Expert for the Reset Process Under the Rules for Setting Distribution Wheeling Rates (DWR) for Privately-Owned Distribution Utilities (DUs) Entering Performance Based Regulation (PBR).
“The ERC decided to retain the services of the PB Associates considering its efficiency, good technical standards and good understanding of the Philippine regulatory and social environment. More importantly, PB Associates’ familiarity with the Issues Paper, Position Paper and the Distribution Wheeling Rates Guidelines (DWRG), and the regulatory reset process makes it well placed to assist the ERC in the planning and preparation of regulatory documents for the Regulatory Reset Process for privately owned distribution utilities (DUs) entering the Performance Based Regulation (PBR),” ERC Chairman and CEO Rodolfo B. Albano, Jr. clarified.
In the said Resolution, the ERC extended the present assignment of PB Associates to include the necessary work for the Reset Process of the 2nd Entry Group and appointed it as the Regulatory Reset Expert to assist the ERC in the said Reset Process.
The PB Associates team is currently involved with the 1st Entry Group [composed of the Manila Electric Company (MERALCO), Dagupan Electric Corporation (DECORP), and Cagayan Electric Power and Light Company, Inc. (CEPALCO)]. Considering that it is frequently on site, minimal additional accommodation and travelling cost will be incurred for the conduct of the next task involving the Reset Process for the 2nd Entry Group. This translates to a very competitive rate as compared to the appointment of another Reset Expert. The 2nd Entry Group is composed of the Cotabato Light & Power Company, Inc. (COLIGHT), Ibaan Electric and Engineering Corporation (IEEC), Iligan Light & Power Company, Inc. (ILPI), and Mactan Electric Company (MECO).
The ERC, in April 2006, resolved that the entry to the PBR by private DUs be made mandatory under the DWRG. Pursuant to the Electric Power Industry Reform Act (EPIRA) of 2001, the ERC is authorized to adopt alternative forms of internationally-accepted rate setting methodology as it may deem appropriate, provided that the same will ensure a reasonable price of electricity and will promote efficiency as well.
“The ERC adheres to its mandate and works hard to ensure the success of a competitive electricity market as envisioned in the EPIRA,” Chairman Albano concluded.
November 13 , 2006