Policy analysts pay the DoE a fee to allow automatic price increases within a range

By John Victor D. Ordoñez, A reporter

PHILIPPINE lawmakers should expand the Energy Regulatory Commission’s (ERC) pool of technical staffff simplifying the administrative work in approving energy price requests, while strengthening regulatory frameworks in the approving process to ensure the right prices, analysts said at the weekend.

“The authority to exercise regulatory power to serve the public interest is more important than streamlining the approval process and reducing the ERC’s burden,” said Terry L. Ridon, public investment analyst and organizer of the InfraWatch PH think tank. in a Facebook Messenger chat.

“The solution to solving these administrative problems is to increase the technical staff of the commission to ensure the time-consuming approval of various complaints before it,” he added.

Energy Secretary Sharon S. Garin last week urged Senate leaders to amend the ERC constitution to allow rate increases without regulatory approval as long as they fall below a fixed rate or bracket.

This will allow the ERC to eliminate the cumbersome approval process that power distributors have complained about, he told the Senate energy committee looking at changes to the 23-year-old Electric Power Industry Reform Act (EPIRA).

The Department of Energy (DoE) is finalizing proposals for fines that the ERC can issue in cases of economic destruction in the power generation sector, said Ms. Garin earlier.

In his third speech to Congress, President Ferdinand R. Marcos, Jr. he called for a review of EPIRA to address the problems plaguing the energy sector, especially high electricity prices.

“The electricity sector is a natural state that needs strict regulation because it is very sensitive and affects all aspects of economic and household life,” Jose Enrique “Sonny” A. Africa, executive director of the IBON Foundation, said on Viber. the message.

“Streamlining processes and removing regulatory checks is empowering energy firms to adjust prices more easily and according to their expertise.fit motivation,” he added.

He added that unchecked price increases will make life difficult for low-income families and small businesses.

Senator Sherwin T. Gatchalian earlier said that Congress should empower the ERC to expedite the approval of power supply agreements to address frequent blackouts in the country.

Energy Secretary Rowena Cristina L. Guevarra told senators in May that 4,000 megawatts of power could be added to the country’s electricity generation capacity by the end of the year.

He said that some power plants that have set up eyes this year are lagging behind in the application process but are ready to start working.

In the past, analysts have said that lawmakers should balance different ownership and address privatization issues under EPIRA to increase competition.

The Think Tank Center for Energy Research and Policy said it has identified the need to change the electricity procurement process and increase investment incentives to increase competition.

It also recommended to improve the regulatory capacity of the energy ministry and the ERC.

EPIRA restructured the electricity industry by privatizing the generation, transmission, distribution and supply of energy in 2001.

Under Section 5 of the law, multiple ownership – the concentration of ownership in two or more related businesses – is prohibited only between the transfer company and any company in production and distribution.

“Regulatory bodies like the ERC are needed as counter-companies to market and check regulatory compliance, to ensure that the electricity sector operates transparently, equitably and wider public welfare,” said Mr. Africa.