ERC to power distributors: Consult consumers before any rate hike

A distribution utility, applying for a power rate increase, should conduct first expository hearings in its franchise area and know the concerns of the consumers there.

This was the recent directive of the Energy Regulatory Commission over distribution utilities to ensure that consumers are given participation in the decision-making, especially in hiking power rates.

"To ensure consumers participation, we have additional requirements into our rules. Private distribution utilities should do expository hearing in their franchise areas if they apply for increase in their rates," ERC commissioner Oliver Butalid said.

The expository hearing should be held two weeks before the publication of the utility firm's petition for rate hike in major newspapers and two weeks before the scheduled public hearing of the ERC on such petition.

Butalid outlined the ERC order while speaking in a workshop on electricity consumer-related issues held at the Diplomat Hotel in Cebu City Friday.

Speakers from the Public Utilities Commission of Texas, USA, and from the Essential Services Commission of Australia have shared their experiences on letting consumers participate in activities involving power issues.

ERC chairman Rodolfo Albano Jr. added that global solutions to issues, facing regulators, are very important in finding new approaches to serve power consumers effectively. He said the ERC's priority is to ensure that consumers get enough power and services they need.

In the ensuing forum, the Freedom from Debt Coalition group aired its concern over the lack of consumers' participation in formulating energy reforms and related activities.

Mike Enriquez, FDC-Cebu chairman, said consumers are not empowered and there is need to strengthen consumer participation in the power industry.

"You should give them the chance to have a say on the policy-making process. In the end, it is the consumers, especially those in the lower income level and less capacity to influence policies that shoulder the burden of upward adjustment in electricity rates," he said. - Wenna A. Berondo