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By Euan Paulo C. Añonuevo Reporter
THE Energy Regulatory Commission
(ERC) threw out a petition filed by
the Department of Trade and Industry (DTI) outlining several
proposals President Arroyo offered to bring down the country’s
electricity costs.
In a letter addressed to Victorio
Dimagiba, a DTI director, Maria Corazon Ginez, officer in charge of
the regulator’s general counsel’s office, asked the department
to substantiate its petition seeking to modify existing approved
lifeline programs of distribution utilities. The ERC also sought to
clarify the legal capacity and authority of the DTI-Bureau of Trade
Regulation and Consumer Protection to file the petition on behalf of
consumers.
In its petition, the DTI wants
Manila Electric Co. (Meralco) to buy from the Wholesale Electricity
Spot Market (WESM) during off-peak hours. The department also wants
the country’s largest electricity distributor to offer
preferential rates for poor households and power-intensive
industries with regard to their share in the charges made by the
National Transmission Corp. (TransCo).
The government also wants the ERC
to prohibit Meralco from charging system losses as a separate item,
and to compel the distributor to peg its rates to those offered by
other utilities that charge lower rates.
The ERC asked the DTI to explain
among others the legal basis, justification and rate impact of the
said proposals and publish its petition in compliance with the
implementing rules and regulations of the Electric Power Industry
Reform Act of 2001 (Epira) and the Supreme Court decisions on the
matter.
Mrs. Arroyo earlier directed the
DTI to file a petition before the ERC for the said proposals as part
of her response to the recent Philippine Energy Summit.
The President said that of the
140 electricity distributors in the country, Meralco collects the
highest distribution charge from customers.
“Much as the ERC would want to
expedite its action on this petition, there are procedural
requirements that the DTI has to comply with; otherwise, it may not
be able to discharge its burden of proof during the hearings,”
Rodolfo B. Albano Jr., ERC chairman, said.
“Also, it is important for DTI
to comply with the procedure in the Epira implementing rules and
regulations, which as interpreted by the Supreme Court, is
mandatory,” he added.
Under Section 6, Rule 3 of the
ERC Rules of Practice and Procedure, the regulator can return any
petition it deems to be not in substantial compliance with its rules
or any applicable statutes. Once returned, the petitioner may
re-file the same after complying with all the requirements.
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