ERC to study power law changes

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THE Energy Regulatory Commission (ERC) said they will have to examine first the feasibility of the proposal of senators Juan Miguel Zubiri and Sherwin Gatchalian to amend the Electric Power Industry Reform Act (Epira) law.

Both senators opened the possibility of amending the said law particularly on the creation of sub-transmission corporations following the intra-corporate dispute between Bukidnon Second Electric Cooperative, Inc. (Buseco) and the Bukidnon Sub-Transmission Corporation (BSTC).

ERC was also tasked to submit their separate position paper to the senate committee.

Section 8 of the Republic Act 9136 otherwise known as Epira stated that the transmission company shall transfer its sub-transmission assets and facilities to qualified distribution utilities.

Zubiri, however, said the National Grid Corporation of the Philippines should be the only institution that should oversee maintenance, upgrading and operating transmission lines.

"Ang creation sub-transmission transmission is dagdag perwisyo, as we can see, another layer of rates nga pass-on rates ang ihatag sa atong mga kaigsoonan benefeciaries of electricity. Ihatag nalang ng transmission maintenance sa NGCP kay mao man na ilang main function, this is my suggestion to ERC," Zubiri said.

Gatchalian made the same suggestion to ERC.

"Iiwan nalang sana lahat ng substransmission maintenance sa NGCP, pero kailangan nating iamend nga ang EPIRA law kasi it allows na ibenta din ang mga sub-transmission," he said.

Neil Silva, ERC executive director, said they have yet to come up with the position on the matter.

"Based on our experience on the issue, we will have to examine if it's feasible, wala pa po kaming position on that. In the meantime, we will continue implementing what the law says. Right now kasi ang sinasabi nito is ang sub-transmission assets are treated differently,” Silva said.

“If the Senate and House now decide that they should be treated now as part of the transmission facility, we will implement it," Silva said.

"But as far as the ERC is concerned, we will continue to fulfill our obligation and assure that the rates are least cost for our consumers and number two, we will make sure na stable yung grid," Silva added.

Silva said right now, ERC is focused on resolving the intra-corporate dispute involving Buseco and BSTC, particularly BSTC's proposal that the pass-on rate to Buseco consumers should be raised from P21 per kilowatt hour (kWh) to P105/kWh, which both senators bluntly opposed.

"No comment muna about the case kasi ongoing pa yung hearing but we will make sure na fair po yung magiging decision nito," Silva said.

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