THE CHAIRMAN of the Senate energy committee has asked the Department of Energy (DoE) to identify the areas in the Philippines that will be hit by power interruptions if the “crisis” at the Energy Regulatory Commission (ERC) lingers for the next six months.

In a Senate hearing on Tuesday, Senator Sherwin T. Gatchalian, who heads the committee, has also asked for a copy of the DoE’s contingency plan in case some areas end up without power with the ERC’s inability to approve power supply agreements (PSAs) in view of the one-year suspension of its four commissioners.

“According to the DoE earlier, there is now a surplus of supply. The problem is where is that surplus because we have to match now the location and the surplus. If the problematic areas will be in Mindanao, you cannot bring the  surplus from Luzon to Mindanao,” Mr. Gatchalian told reporters on the sidelines of the hearing.

“That’s why we are asking for the contingency measures of the DoE how they will get through the critical next six months especially [during] the summer season,” he said.

Mr. Gatchalian said the “most practical” way forward for the ERC is for the Office of the President to appoint temporary commissioners, a move which he said has legal basis under the administrative code. He said the DoE shares the same view about the legality of the appointment.

The four ERC 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 challenges, a process that is aimed at lowering electricity costs.

As a collegial body, the ERC needs the presence of at least three members of the commission to constitute a quorum and the majority vote of two members in a meeting is necessary. But for the approval of electricity rates, the unanimous vote of the three is required.

“If at that time that we really need to beef up the reserves for the supply we have not acted upon, then time and motion will dictate that the probability of brownout will be there,” said ERC Chair Agnes T. Devanadera.

Ms. Devanadera has told Malacañang about the possible impact of an impasse at the ERC due to its inability to perform its quasi-judicial and quasi-legislative functions.

The crippled functions include holding of hearings as notices and schedules are set by the commission; deliberations on applications for approval of power supply agreements, capital expenditure projects of the distribution utilities and the grid operator, rate adjustments, pass-on charges; and issuance or renewal of certificates of compliance or provisional authorities to operate power plants.

The suspension of the four ERC commissioners will put on hold funding for P1.588 trillion worth of energy-related projects and capital outlays that will hit millions of Filipinos, Ms. Devanadera said.

In a statement on Tuesday, the DoE said the law requires it to abide by the year-long suspension order of the Ombudsman against the four ERC commissioners.

“We have already requested for the designation of acting commissioners so that ERC can continue its functions,” it said. “We wish to assure all stakeholders that the suspension will not cause any debilitating effect to the power supply and services in the Philippines.”

The DoE also said that it had been pushing for reserve capacities for possible contingencies.

“This will ensure an uninterrupted supply at all times for power security and reliability,” it said. “Thus, we are certain that we can overcome this recent challenge to the  energy sector.” — Victor V. Saulon

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