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THE
Energy Regulatory Commission (ERC) directed the
Department of Trade and Industry (DTI) to supplement the
allegations in its omnibus petition to modify, among
others, the existing approved lifeline programs of the
distribution utilities.
“Much as
the ERC would want to expedite its action on this
petition, there are procedural requirements that the DTI
has to comply with; otherwise, it may not be able to
discharge its burden of proof during the hearings,”
Rodolfo B. Albano Jr., ERC chairman, said.
The
chief regulator said it is important for the DTI to
comply with the procedure in the Electric Power Industry
Reform Act-Implementing Rules and Regulations (Epira-IRR),
which, as interpreted by the Supreme Court, is
mandatory.
At the
closing of the 2008 Philippine Energy Summit, President
Arroyo ordered the DTI to petition the ERC on a number
of issues related to the Manila Electric Co. (Meralco)
to reduce the power costs of both poor families and big
power consumers alike.
The ERC,
in a letter addressed to director Victorio Dimagiba of
the DTI, asked the DTI to clarify and allege the legal
capacity and authority of the Department of Trade and
Industry-Bureau of Trade Regulation and Consumer
Protection (DTI-BTRCP) to file the petition on behalf of
the consumers; and the details of the proposed lifeline
programs, the rate impact thereof on the subsidized and
on the subsidizing class, the basis for the
determination of the lifeline threshold, and
justifications for adoption of such programs.
The ERC
also urged the DTI to clear the details, legal basis
and justification of the petition for the ERC to direct
Meralco to buy from the Wholesale Electricity Spot
Market (WESM) at peak hours; the mechanics for the same;
the benefit of such proposal to the consumers in terms
of lower power rates; and the details, legal basis,
mechanics and justification of the petition for the
preferential treatment for poor households and
power-intensive industries in the distribution of the
National Transmission Corp. (Transco) charges by Meralco.
The ERC
added that the DTI should also clear the legal basis,
benefit and rate impact of prohibiting Meralco from
charging system loss as a separate item.
The
regulatory body even further asked the DTI to specify
the legal basis and details of its proposal for the ERC
to peg Meralco’s rates comparable with that of Visayan
Electric Co., Cebu Electric Cooperative Inc. and Davao
Light and Power Corp. rates, including justification for
departing from the “cost of service” principle in
rate-setting as enshrined in the Epira.
In
addition to these directives, the ERC asked the DTI to
publish its omnibus petition in compliance with the
implementing rules and regulations of the Epira and the
Supreme Court decisions on the matter.
Under
Section 6, Rule 3 of the ERC Rules of Practice and
Procedure, the ERC shall return any petition received
which is not in substantial compliance with its rules or
any applicable statutes. Once returned, the petitioner
may refile the same after complying with all the
requirements. |
