ERC stresses EPIRA mandate to issue CPCN
The Energy Regulatory Commission (ERC) stressed its regulatory authority in the granting of Certificates of Public Convenience and Necessity (CPCN) to utilities engaged in the transmission or distribution of electricity in the country. This statement was made to clarify doubts by some quarters over the authority of the ERC to issue CPCNs.
The ERC promulgated the Rules to Govern the Issuance of Certificate of Public Convenience and Necessity (CPCN) to Entities Engaged in the Transmission and Distribution of Electricity on 12 March 2008 to guide applicants and grantees in the orderly filing and renewal of CPCNs.
“Section 43 (p) of the EPIRA clearly mandates the ERC to act on applications for or modifications of certificates of public convenience and/or necessity, licenses or permits of franchised electric utilities in accordance with law and revoke, review and modify such certificates, licenses or permits in appropriate cases, such as in cases of violations of the Grid Code, Distribution Code and other rules and regulations issued by the ERC in accordance with law,” ERC Chairman Rodolfo B. Albano, Jr. emphasized.
The ERC Chief explained that the EPIRA defines a distribution utility (DU) in a collective manner in Section 4 (q) as any electric cooperative (EC), private corporation, government-owned utility or existing local government unit which has an exclusive franchise to operate a distribution system in accordance with the Act.
“It is hoped that the ECs and other concerned parties have been enlightened on the ERC’s duty to issue a CPCN to a transmission or distribution utility. The ERC looks forward to a mutually beneficial cooperation system in the attainment of the reforms envisioned for the electric power industry,” Chairman Albano concluded.
April 21, 2008