ERC conducts expository hearings on Efficiency Benchmarking of electric cooperatives
The Energy Regulatory Commission (ERC) invites the stakeholders of the electric power industry to attend the expository hearings (EH) on the Methodology for Efficiency Benchmarking of Electric Cooperatives (ECs). For the stakeholders in the Visayas and Mindanao areas, the EH will be held at Eduardo Aboitiz Development Studies Center, 35 Lopez Jaena St., Cebu City on 18 February 2009 (Wednesday) at 1:00 P.M. For Luzon-based stakeholders, the EH will be held on February 20, 2009 (Friday) starting at 1:00 P.M. at the 15th Floor Hearing Room, Pacific Center, San Miguel Avenue, Pasig City. Through attendance in these EHs, it is hoped that ample comments will be gained by the ERC come the public consultation hearings (PC) so that the new methodology in setting the retail rates of the ECs for their respective captive markets would eventually become well-crafted.
The new rate-setting methodology for ECs being developed by the ERC aims to: (1) introduce a tariff-setting methodology that is more responsive to the EC’s needs; (2) provide incentives to improve efficiency and have the gains shared to its consumers; and (3) reduce the regulatory burden of sector regulation.
Regulatory Compliance Officers (RCOs) of ECs are mandated by the ERC to attend the Expository Hearings in compliance to the Mandatory Regulatory Education Program (MREP). The MREP was instituted by the ERC to assist utilities through their RCOs to gain adequate knowledge and understanding of the ERC’s rules, regulations, resolutions and guidelines towards compliance to the law and related issuances.
Section
43 (f) of the Electric Power Industry Reform Act (EPIRA) empowers the ERC to,
in the public interest, establish and enforce a methodology for setting distribution
wheeling rates and retail rates for the captive market of a distribution utility,
taking into account all relevant considerations, including the efficiency or
inefficiency of the regulated entities.
“The ERC must always find ways to improve the viability and cost-efficiency
of ECs so that the long-term interests of electricity consumers are promoted
and protected,” Chairperson Zenaida G. Cruz-Ducut observed.
February 13, 2009