ERC clarifies stand on jurisdiction over NPC
Chairperson Zenaida G. Cruz-Ducut of the Energy Regulatory Commission (ERC) clarified that a statement taken during a press interview that: “We (ERC) have no jurisdiction at all over NPC (National Power Corporation)”, was seemingly taken out of context. “Yes, the ERC has no jurisdiction over the contracts entered into by the NPC for the purchase of its fuel requirements (e.g. coal). Let it be emphasized, however, that the ERC’s mandate is to ascertain that only reasonable costs are recovered by NPC through its rates,” Chairperson Ducut said. “The ERC closely scrutinizes each and every component in the NPC’s rates and allows only reasonable costs to be passed on to electricity consumers,” Chairperson Ducut added. This clarification is issued to rectify statements appearing in major dailies on July 16, 2008.
“Further, in reaction to the statement attributed to the NPC in an article in one of the major dailies on the same date, the ERC is not directly involved in the approval of NPC’s fuel procurement. What the ERC looks into is the fuel consumption in power generation and excessive and/or misuse of fuel are disallowed,” Chairperson Ducut said.
ERC Chairperson Ducut is a co-author of the EPIRA at the House of Representatives which makes her fully aware of the duties and responsibilities of the ERC. “I may be new to the ERC, but I would humbly say that I have knowledge on the EPIRA and I am more than willing to learn the complexities of the electric power industry”, Chairperson Ducut concluded.
July 22, 2008