THE CHAIR of the Energy Regulatory Commission (ERC) said the impending suspension of the agency’s four commissioners poses a “dangerous” regulatory risk as she listed nine crucial functions that will be crippled without a quorum.

ERC Chair Agnes T. Devanadera, in statement posted on the agency’s Web site late on Wednesday, said as a collegial body the presence of at least three members of the commission is needed to constitute a quorum and enable the adoption of any ruling, order, resolution, decision or other acts in their exercise of quasi-judicial and quasi-legislative functions.

“The absence of a quorum in the ERC will make it unable to perform any of its quasi-judicial and quasi-legislative functions,” she said.

She noted that hearings will not be conducted as notices and schedules are set by the commission;

No deliberations on applications for approval of power supply agreements, capital expenditure projects of the distribution utilities and the National Grid Corporation of the Philippines, rate adjustments, pass-on charges will be undertaken;

Consumer complaints will not be acted upon;

Violations of industry players of existing laws, rules and regulations will not be acted upon;

Certificates of compliance or provisional authorities to operate power plants will not be issued or renewed;

Market suspension will not be declared when warranted;

Decisions and resolutions cannot be promulgated and released;

Operations of the ERC will be affected as personnel actions could not be undertaken; and

Procurement contracts cannot be awarded, especially the ERC meter seals and stickers being placed on electric meters of the distribution utilities, among others.

Ms. Devanadera said the suspension of the four commissioners “will have a substantial impact for the whole country and presents a dangerous regulatory risk that will severely affect the economic and financial environment of the country.”

The four commissioners, along with the previous ERC chairman, were ordered suspended for one year by the Office of the Ombudsman in connection with the revised implementation date of the competitive selection process (CSP), which it said favored a few power supply contracts.

CSP requires these contracts between power generation companies and distribution utilities to be subjected to price challengers, a process that is aimed at lowering electricity costs. — Victor V. Saulon

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