The Energy Regulatory Commission is pushing for increased penalties and possible imprisonment for rule violators as part of amendments to the Electric Power Industry Reform Act of 2001.
“Increased penalties, because it’s very low. Right now, we can only impose a maximum of P50 million penalty,” ERC chairperson Monalisa Dimanta said.
“Our proposal is up to P500 million maximum in the [EPIRA] amendment from current P50 million,” Dimalanta said, adding this would give more teeth to the police powers of the ERC.
She said ERC met with the Department of Energy and Department of Justice officials to enforce the imprisonment provisions and “ability to pursue prosecution for non-compliance of EPIRA and ERC rulings.”
Dimalanta said the DOJ has the procedure for the filing of cases to implement the EPIRA provision.
“For example, we already imposed the penalty but they did not pay or refund, we cannot do anything,” she said.
Dimalanta said they were looking at a possible task force with the DOJ.
Meanwhile, Dimalanta said the ERC-approved Green Energy Auction Program 2 reserve prices were the “most reasonable at that point given the information that the commission have.”
Dimalanta reacted to industry reactions attributing the low turnout during the GEAP 2 to the ERC reserve prices.
She said some foreign investors submitted bids and won during the auction.
“For some of those investors, the rates were justifiable and were good, in fact they are happy with the rates. I’m curious to see what differences in projects or risk appetites there are between those foreign investors that submitted bids and those who did not submit bids because they find it low,” Dimalanta said.
