Hard target

While the Energy Regulatory Commission (ERC), headless now due to the retaliatory preventive suspension order of the Ombudsman, vowed that the agency remains fully functional, business chambers are expressing anxiety, particularly with the ease by which performing government officials could be randomly taken out by influential interests.

The trade chambers assessed that the action of the anti-graft agency would have profound implications on investor confidence considering the length of the suspension and the crucial role of ERC in regulating players in the energy sector.

The Philippine Chamber of Commerce and Industry (PCCI) pointed out that under Monalisa Dimalanta’s leadership, the ERC has taken significant steps to address industry challenges, enhance energy and power sector investments, boost local industry productivity, and strengthen the country’s economic competitiveness.

Those were not empty acclamations since during the term of Dimalanta, the much-delayed reset of transmission and distribution rates, the integration of ERC processes into the Energy Virtual One Shared System, and updates to the rules governing Certificates of Compliance and Competitive Selection Process were realized.

The Philippine Exporters Confederation and the Employers Confederation of the Philippines have also indicated their support for Dimalanta.

The chambers have raised concerns about the suspension’s potential impact on ERC operations, warning that it could disrupt services and affect consumers, businesses and producers.

They cautioned that it may undermine trust in the ERC, in its independence and authority.

Thus, the groups called for a “swift and transparent resolution” of the suspension to restore the ERC’s integrity and its commission, emphasizing the importance of the ERC’s role in fostering investments, consumer protection and sustainable economic growth.

The issues raised against Dimalanta may be considered inflated in contrast to the performance of her predecessor.

During those lackluster years, the tormentors of Dimalanta were fielding softballs, resulting in Agnes Devanadera not being under any threat for her years of inaction.

Former ERC chairperson and CEO Devanadera, for instance, failed to act on the anomalous and exorbitant weighted average cost of capital or WACC which resulted in utility firms exceeding their mandated incomes.

The WACC then of around 15 percent far exceeded the level of the country’s neighbors of around 7 percent to 10 percent.

Another neglected policy that would have assured an adequate electricity supply was the requirement for reserve capacity.

Devanadera again dragged her feet on the issue of Ancillary Service, or AS, contracts that can support supply when major power plants suddenly bog down.

The oft-repeated excuse then was that acquiring new contracts for AS would mean an increase in the monthly bills of consumers despite ensuring that backup electricity is provided under its concession agreement.

DoE data showed the country had enough power plants to generate the electricity that the country needed if not for the delayed energy projects such as the setting up of projects interconnecting electricity networks.

Devanadera, during her term, also failed to act on proposals for a power audit.

The oft-repeated excuse that the ERC did not have the personnel and resources for an extensive audit failed to hold up since agencies such as the Department of Energy, the National Transmission Corp. and even the Commission on Audit could help conduct the energy audit.

Instead, ERC went along with the scheme for a useless online audit during Devanadera’s term.

Most of ERC’s shortcomings were made right under the new dispensation, which irritated several influential groups that led to the efforts to bump off the ERC head whom they found to be too hard to be pliant.