Francis Saturnino C. Juan has stepped down as independent director of Synergy Grid & Development Phils., Inc. (SGP), the holding company of the National Grid Corp. of the Philippines (NGCP), following his appointment as the next chairman of the Energy Regulatory Commission (ERC).
In a disclosure to the Philippine Stock Exchange on Wednesday, SGP said Juan tendered his resignation “effective immediately” through a letter dated 21 July.
"His resignation is brought about by his appointment as Chairman of the ERC, with the appointment taking effect on August 8," the company said. SGP has yet to announce a replacement for Juan on its board.
As he prepares to assume the top post at the ERC, Juan has vowed to prioritize reforms aimed at addressing regulatory backlogs and accelerating the approval of new power supply deals.
"With the end given streamlining and fast tracking the approval process," Juan said, the goal is to "ensure the timely entry of new generation capacities" that can keep up with surging electricity demand.
He said he would push for a shift away from the current “yardstick” rate model used for electric cooperatives. Instead of a uniform rate-setting method, Juan wants co-ops to be allowed to apply for individual rate adjustments.
To ease regulatory bottlenecks, Juan proposed allowing utilities such as the NGCP to implement capital expenditure projects after three months of regulatory inaction, without incurring penalties.
To further cut red tape, he also suggested that Certificate of Compliance applications with complete documentation be considered approved if left pending for 30 days.
“All these are my initial thoughts, to address the backlog at ERC, to streamline processes, to simplify requirements, and to come up with timely and sensible decisions and regulatory actions,” Juan said.
“All to promote consumer interests by ensuring more investments in additional capacities, both in generation and transmission/distribution sectors at competitive or well-regulated and reasonable tariffs.”
Juan noted, however, that the implementation of these reforms would not be unilateral.
“I will consult the other members of the Commission about these proposals and together, we will consult all stakeholders and thereafter decide as one collegial body,” he said.