PEPOA sheds light on ERC’s Resolution No. 21
The Energy Regulatory Commission (ERC) very much welcomed Private Electric Power Operators Association Inc.’s (PEPOA) issuance of its own clarification and expression of support to the ERC on the controversial Resolution No. 21, series of 2006.
In its letter dated 22 June 2006, PEPOA through its Executive Director Ranulfo M. Ocampo, clarified the circumstances behind the controversial issuance of Resolution No. 21 in the hope of finally putting to rest speculations behind the issuance.
ERC Resolution 21 pertains to the suspension of the effectivity and implementation of the Amendment to the Guidelines for the Recovery of Costs for the Generation Component of the Distribution Utilities’ Rates (dated 22 December 2004) and Resolution 18, series of 2005. The suspension aims to obviate a possible legal challenge to the validity of the afore-stated rules; and to afford all affected parties the opportunity to submit their views and comments thereon.
ERC Rule 18 refers to the implementation of rules to offer and sell to the public a portion of not less than fifteen percent (15%) of generation companies and DUs’ common shares of stocks pursuant to Section 43(m) of Republic Act 9136 and Rule 3, Section 4(m) of its Implementing Rules and Regulation (IRR).
PEPOA upheld the ERC’s issuance of Resolution 21 as more than justified to come up with clear policy on the matter. Likewise, PEPOA clarified that some of its members, like Cagayan Electric Power and Light Company, Inc. (CEPALCO) through its letter dated 24 April 2006, prompted the issuance of the said resolution.
PEPOA further welcomed the public consultation conducted by the ERC on 20 June 2006 regarding the proposed amendments to the pertained guidelines. Said development was taken as an opportunity for the stakeholders to provide their inputs with the view of refining the amendments.
Lastly, PEPOA expressed its high regard for Commissioner Alcordo and vouched for his impeccable character, stating that the accusations against the esteemed commissioner ascribing ill motives behind the issuance of the subject resolution are totally unfounded.
“The
ERC would like to thank PEPOA and those that had continuously support it in
its endeavour. Rest assure that the ERC is working towards the success of the
restructured electric power industry for the benefit of all its stakeholders
and the entire Philippines,” Chairman Albano concluded.
July 5, 2006