ERC appeals for objectivity
The Energy Regulatory Commission (ERC) appealed for objectivity from its detractors. The appeal was made by the ERC after several dailies and a member of the House of Representatives attacked the characters of its two newly-appointed Commissioners, Atty. Maria Teresa A.R. Castañeda and Mr. Jose C. Reyes, and the integrity of the entire Commission.
Some newspaper columnists and a solon expressed doubts on the capability of the two new ERC commissioners to work independently without being influenced by retired Commissioner Jesus N. Alcordo and power companies. They noted that both Castañeda and Reyes were recommended by Commissioner Alcordo to their post.
Retired ERC Commissioner Alcordo, a former executive of East Asia Power, is being accused by some sectors of having a hand in the allegedly anomalous attempt of the YNN to acquire the Masinloc power plant owned by the National Power Corporation (NPC). He allegedly authored Resolution No. 21, s. 2006 that suspends certain rules of the ERC to facilitate what some quarters claim to be a “sweetheart deal” between Meralco and East Asia Power. The owner of YNN was allegedly paid by East Asia Power a huge sum to secure a power supply contract with Meralco for East Asia’s power barges in Navotas.
The solon who questions the appointment of the two new Commissioners said that “equally responsible for the mess was the Energy Regulatory Commission when it became a willing accomplice to the crime primarily because of the economic interest of one of its Commissioners in the Masinloc deal.”
“The issues hurled against the two Commissioners and the ERC have no factual basis and are issues of the past that are now moot and academic with the government’s cancellation of the YNN eligibility to purchase the Masinloc power plant after failing to post a security deposit for its bid. More importantly, ERC has already clarified that the suspension of some of its rules through Resolution No. 21 s. 2006 was made in the light of concerns raised by some distribution utilities (DUs) that include the Cagayan Electric Power and Light Company (CEPALCO). These DUs were worried about a precedent case decided by the Supreme Court on the requirement of public consultation for the adoption of rules,” ERC Chairman Rodolfo B. Albano, Jr. explained.
“Let it be stressed that the ERC is an independent body that renders fair and equitable decisions without bias to any entity or individual. The ERC will always be a faithful servant of the Filipino people that looks after the welfare of both the consumers and the power providers in the electric power industry,” Chairman Albano added.
For his part, Commissioner Reyes said that “the dragging of Commissioner Alcordo’s name in the Masinloc case and my recent appointment as an ERC commissioner are non sequitur. My detractors are obviously doing a “billiard” bank shot using two unrelated events. It does not follow that just because I was a former subordinate of the honorable Commissioner, I could also be falsely accused that I will involve myself in the dead issue of the Masinloc sale where the good name of the erstwhile Commissioner has been dragged. Be it as it may, take note that no charges have been made against Commissioner Alcordo over an alleged wrong-doing involving the Masinloc power plant.”
Commissioner Castaneda, on the other hand said: “I rose from the ranks. I started with ERC’s predecessor, the Energy Regulatory Board (ERB), way back 1992, then became the Legal Service Director of the ERC and finally its Executive Director before being appointed by Her Excellency President Gloria Macapagal Arroyo as Commissioner. My track record at the ERB and the ERC can speak for itself. I leave it to those who question my appointment to review my performance record and make their judgment on what they find out.”
August 23, 2006