ABOITIZ POWER Corp. has joined calls from industry stakeholders for the President to resolve the impasse at the Energy Regulatory Commission (ERC) after the suspension of the agency’s four commissioners for a year.

The listed company, one of the biggest energy groups in the country, said a “fair and functioning ERC is critical for the energy sector to work.”

“A working regulatory body balances the welfare of the paying consumers, interests of the private investors, and the government’s desire for reliable and ample power,” said Antonio R. Moraza, AboitizPower president and chief operating officer, in a statement on Wednesday.

“We are appealing to the national leadership to resolve the ERC issue as soon as possible so the commission can get back to work and act on many pending issues awaiting their decision,” he added.

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, which it said favored a few power supply contracts.

As a collegial body, the ERC needs the presence of at least three members of the commission to constitute a quorum. The majority vote of two members is needed during meetings that require regulatory approval. But for the approval of electricity rates, the unanimous vote of the three is required.

The earliest that the regulator can have a quorum is if the Office of the President immediately appoints temporary commissioners when two of the suspended officials retire in July.

Earlier this month, Manila Electric Co. President Oscar S. Reyes said he wanted to be able to assure consumers in the utility’s franchise areas “that we will have adequate, reliable, least cost power.”

“That’s why ERC approval of our PSAs [power supply agreements] is critical,” he said, referring to seven Meralco supply contracts that are pending with the regulator.

Meralco, the country’s biggest power distribution utility, was hoping to see the approval of the contracts by the end of last year but the Ombudsman’s suspension order was served on Dec. 22, 2017.

“It may put at risk the capability of the industry to assure not only supply to customers but security of supply moving forward,” Mr. Reyes said.

“The industry is probably neutral as to the composition of the commission. What is important is it is adequately staffed [with people] who can properly play their roles as regulators,” he added.

ERC Chair Agnes T. Devanadera has said that the suspension of the commissioners would put on hold funding for P1.588 trillion worth of energy-related projects and capital outlays.

Sherwin T. Gatchalian, who chairs the Senate committee on energy, said in a legislative hearing last week that the “most practical” way forward for the ERC is for the Office of the President to appoint temporary commissioners. He said the move has legal basis under the administrative code.

For its part, the Department of Energy (DoE) agreed with the Philippine Electricity Market Corp. to allow power generation companies with expired certificates of compliance (CoC) — including those with pending applications — to continue operating and trading at the wholesale electricity spot market.

The agreement with the operator of the spot market is in line with DoE Secretary Alfonso G. Cusi’s pronouncement that he would not allow any disruption in the country’s power supply.

The CoC, which is issued by the ERC, is proof that a power plant complies with the applicable regulations, making it safe to switch on and operate. — Victor V. Saulon

RELATED ARTICLESMORE FROM AUTHOR