Press Release
August 19, 2023

Gatchalian: Empower ERC with its own charter for regulatory might

Senator Win Gatchalian wants the Energy Regulatory Commission (ERC) to have its own charter to give the regulatory body more teeth in addressing industry issues such as delays of the National Grid Corporation of the Philippines' (NGCP') transmission projects.

While the ERC has received the explanation submitted by the NGCP regarding the delays in the completion of its multiple transmission projects, industry issues such as these have prompted Gatchalian to file Senate Bill no. 487, An Act Enhancing The Governance Structures Of The Energy Regulatory Commission. If enacted into law, the proposed measure will hope to provide ERC with more teeth to regulate various stakeholders in the energy sector.

"The birth of ERC came about because of EPIRA (Electric Power Industry Reform Act of 2001). But if you read EPIRA, there is much room for improvement especially given recent developments in the industry, so I am going to push for the creation of ERC charter," vowed Gatchalian, adding he has already discussed the issue with Energy Secretary Raphael Lotilla and ERC Chairperson Monalisa Dimalanta and they all agreed on the need to revisit the powers of the ERC.

"ERC is one of the most important actors in the energy sector, so we have to make sure that it has enough power to penalize," Gatchalian stressed. He added that as a regulator, ERC plays an important role in ensuring that the interests of consumers are protected, and its governance structure should foster independence, transparency, and accountability.

The vice-chair of the Senate Committee on Energy had earlier called on the ERC to penalize NGCP for its failure to complete transmission projects on time, leading to disruption in the flow of the county's energy supply. According to the ERC, the completion of about 66 transmission projects is currently delayed, excluding 6 projects of national significance. One is the Mindanao-Visayas interconnection project which was due for completion in 2019. Due to delays, the project was set to become operational in June or July of this year. "That's one of the most critical infrastructure projects because we have surplus power in Mindanao of about 200 to 400 megawatts that can be delivered to the Visayas region," he noted.

According to Gatchalian, the proposed creation of the ERC Charter also bodes well with another proposed legislation to rightsize the government bureaucracy.


Gatchalian: Bigyan ng sariling charter ang ERC para sa mas malakas na regulasyon

Nais ni Senador Win Gatchalian na magkaroon ng sariling charter ang Energy Regulatory Commission (ERC) upang dagdagan ang kapangyarihan ng regulatory body sa pagtugon sa mga isyu sa industriya tulad ng pagkaantala ng mga proyekto ng National Grid Corporation of the Philippines (NGCP) na nakakaapekto sa suplay ng kuryente.

Baganat natanggap na ng ERC ang isinumiteng tugon ng NGCP sa mga sinasabing pagkaantala ng pagpapatupad ng ilang transmission projects nito, ang mga isyung tulad nito ang nagtulak kay Gatchalian na maghain ng Senate Bill no. 487, o An Act Enhancing The Governance Structures Of The Energy Regulatory Commission. Sa oras na maisabatas, ito ay magbibigay sa ERC ng mas malawak na kapangyarihan upang ma-regulate nang maayos ang iba't ibang stakeholder sa sektor ng enerhiya.

"Nabuhay ang ERC dahil sa EPIRA (Electric Power Industry Reform Act of 2001). Kung babasahin mo ang EPIRA, marami pang kailangang ayusin kaya't tututukan ko ang pagbalangkas ng ERC charter," ani Gatchalian. Dagdag niya, nakausap na niya sila Energy Secretary Raphael Lotilla at ERC Chairperson Monalisa Dimalanta at lahat sila ay nagkasundong pag-aralan nang maigi ang kapangyarihan ng ERC.

"Ang ERC ay napakahalaga sa sektor ng enerhiya kaya kailangan nating tiyakin na mayroon itong sapat na kapangyarihan para magparusa," diin ni Gatchalian. Idinagdag ng senador na bilang isang regulator, dapat tinitiyak ng ERC na ang interes ng mga mamimili ay protektado at ang pamamahala nito ay dapat magsulong ng kalayaan, pananagutan, at transparency.

Nauna nang nanawagan ang vice-chair ng Senate Committee on Energy sa ERC na parusahan ang NGCP dahil sa kabiguan nitong makumpleto ang transmission projects sa takdang oras, na humantong sa pagkagambala ng suplay ng enerhiya sa bansa. Ayon sa ERC, 66 ang transmission projects sa iba't ibang lugar sa bansa ang naantala. Isa na rito ang Mindanao-Visayas interconnection project na nakatakda sanang matapos noong 2019. Pero dahil sa pagkaantala ng proyekto, itinakda na lang itong maging operational ngayong taon. "Ito ang isa sa mga pinaka kritikal na proyektong pang imprastraktura dahil mayroon tayong sobrang kuryente sa Mindanao na humigit kumulang 200 hanggang 400 megawatts na maaaring maihatid sa Visayas," aniya.

Ayon kay Gatchalian, ang panukalang paglikha ng ERC Charter ay hudyat din ng isa pang panukalang batas para maisaayos ang burukrasya sa gobyerno.

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