Congress plans to look into two recent decisions by the Energy Regulatory Commission involving the interim maximum annual revenue of National Grid Corporation of the Philippines and the extension of the deadline for compliance with the competitive selection process in the procurement of power supply by distribution utilities.
Party-list Rep. Harry Roque, in a hearing last week, called attention to reports that ERC, while chairman Jose Vicente Salazar was on official leave, favored a higher iMAR for NGCP which could add burden to power consumers.
NGCP is the concessionaire of the country’s nationwide power transmission system. It is partly owned by the government of the People’s Republic of China through the State Grid Corporation of China.
The NGCP iMAR is the cap imposed by ERC on the revenues that it can earn in a given year. The cap aims to protect consumers from unbridled spikes in transmission charges.
Roque also questioned why the reversal of the earlier decision in favor of the higher iMAR was made at the time that Salazar was on leave following investigations related to the suicide of ERC director Jose Francisco Villa Jr.
Solons also called for further probe on the move by ERC to extend the deadline for the implementation of the CSP which allegedly paved the way for some “midnight deals” between power distributors and generators.
The ERC chairman, upon questioning by the solons, said he opposed the extension on record but had to respect the decision of the majority.
The extension earlier came under fire as cause-oriented groups raised concerns that the move favored some of the country’s biggest power distributors.
The CSP required DUs to call for at least two bids for their power requirements. CSP rules allow them to buy from affiliate power generators only as a last resort.