Delay in Meralco stake’s offer not our fault, says ERC official

The Energy Regulatory Commission (ERC) should not be blamed for any delay in the sale of government’s stake in Manila Electric Co. (Meralco), a ranking ERC official said.

“Regulatory lags are unavoidable if we are to discharge faithfully our duty to adhere to the requirements of due process,” ERC chairman Rodolfo B. Albano Jr. said.

The ERC is being criticized for allegedly sitting on the approval of the rate applications of power generation companies and distribution utilities, including Meralco.

Some sectors said the delay in the approval of rate applications of Meralco may hinder the sale of government’s combined 29 percent stake. Potential buyers of the government’s shares in Meralco may look at the prospects of these rate applications before bidding.

Investors, the sources added, would like to know if these rate applications are to be approved or not.

Albano, however, pointed out that there are procedures that need to be followed before any rate application is approved by the ERC.

“The ERC greatly respects the due process requirement of the EPIRA (Electric Power Industry Reform Act) and other provisions of law. The ERC renders rulings and decisions within the legal timeframe and certain delays are due to technicalities that are greatly beyond its control,” Albano said.

With the guidance of the Joint Congressional Power Commission (JCPC)’s guidance and the Department of Energy’s promulgation of certain amendments in the EPIRA IRR (implementing rules and regulations), the ERC now foresees the timely recovery of generation and foreign exchange-related costs.

The ERC chief said the amendment also shields electricity consumers from paying additional cost due to interests on deferred charges while enabling the financial viability of the power utilities.