THE Energy Regulatory Commission (ERC) said the travels of its key officials are “legitimate, legal and necessary” as they build their capability to fulfill their role in the process of restructuring the industry.

ERC
File photo of ERC officials, led by ERC OIC Alfredo J. Non (fourth from left), attending the hearing of House joint committees on good government and public accountability and on energy in July 2017. — www.erc.gov.ph

In a statement on Sunday, the ERC said it plays a critical role in the restructuring of the power industry after the country adopted significant reforms with the passage in June 2001 of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (EPIRA). “The role of the regulator … in the restructuring process is critical since its mandate remains extremely challenging,” it said.

The statement comes after President Rodrigo R. Duterte called out ERC officials over their travel.

“The complex nature of the restructuring process and the subject matter of electricity markets require trainings and meetings of the members of the Commission and personnel aimed to build their technical understanding and capacity, enhance and advance their knowledge and appreciation on current dynamics and emerging issues in electricity markets and the deregulated industries,” the ERC said.

“The travels in relation to these are therefore legitimate and necessary, not directly paid to these agencies but instead earmarked, appropriated, and disbursed in accordance with their instructions,” it said.

The ERC added that all expenses have been accounted for, disbursed and liquidated in accordance with rules of the Philippine Electricity Market Corp. (PEMC), the market operator. PEMC is mandated to administer the wholesale electricity spot market (WESM) through the market rules promulgated to govern the market. “The charge that is imposed by PEMC in administering the WESM is subject to the approval of the ERC in the form of market fees. Cognizant of the limited resources available to government in performing tasks related to the highly complex subject matter, the market rules obliged the provision of resources by the market operator to the ERC and the Department of Energy,” ERC said. — Victor V. Saulon

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