THE Energy Regulatory Commission (ERC) said it is seeking help from the Department of Justice (DoJ) to enforce its rulings, holding out the threat of imprisonment for violators if necessary.
“We wrote to the DoE (Department of Energy) and DoJ so we can enforce the imprisonment provisions, the ability to pursue prosecution for non-compliance with EPIRA and non-compliance with ERC rulings,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta told reporters last week.
Ms. Dimalanta said that the Commission will press for imprisonment for those that do not follow the Commission’s rulings and orders. Imprisonment for non-compliance is authorized as a possible penalty by the Electric Power Industry Reform Act (EPIRA).
“For example, (if) we impose penalties (or) order refunds but they do nothing, this will leave us with no choice. So, we discussed with the DoJ the procedure for filing cases to implement the imprisonment provisions of EPIRA as a penalty,” she said.
Ms. Dimalanta said that the Commission is trying to work out with the DoJ the procedure for filing cases. The ERC has police powers and can call on other government agencies under the amended Public Service Act.
“What we are trying to work out with the DoJ is the procedure. Do we file the complaint as a complainant with the fiscal’s office? Our proposal right now (is to follow a similar procedure as) the BIR (Bureau of Internal Revenue), which has a task force against tax evaders,” she said.
Ms. Dimalanta said that the ERC has also submitted its inputs to the DoE on the proposed amendments to EPIRA.
Among the amendments being sought by the Commission are an ERC reorganization to give the Commission the flexibility to expand its organization and increase penalties it can impose.
“The industry in 2001 is not the same today. In fact, we are moving towards a more retail-oriented market. So, we need to have the flexibility to move along to reshape our organization as the industry also reshapes. What we want is some form of flexibility in fixing and rearranging the organization,” she added.
Ms. Dimalanta reiterated that the ERC sought an increase in the maximum fine it can impose on regulated entities to P500 million.
The DoE has said that its proposals for amending EPIRA include an increase in the ERC’s power to fine regulated entities to P500 million, from the current maximum of P50 million for violations of competition rules.
Under EPIRA, the ERC can levy a fine of between P50,000 and P50 million for entities found, after due notice and hearing, to have engaged in “any anti-competitive act including but not limited to cross-ownership, cross-subsidization, price or market manipulation or other unfair trade practices, taking into consideration its effect on the electric industry and its participants.”
Meanwhile, Ms. Dimalanta said that the ERC expects to release a new “pricing dashboard” next year following the low turnout in the second round of the green energy auction (GEA) program.
“Number one lesson is we need to update the pricing dashboard. It’s been the same dashboard used but considering differences in technology and if we will differentiate price per size,” she said.
The DoE has said that the GEA-2 attracted project commitments equivalent to 3,440 megawatts (MW) of renewable energy (RE) capacity, against the 11,600 MW of RE capacity on offer.
However, Ms. Dimalanta noted that the green energy auction reserve price set was “reasonable” as the contract will be for 20 years.
“It is the most reasonable at that point given the information that the commission has. I’m also curious to learn from the comments that it is too low and detached from reality… for some of those investors, the rates were justifiable and were good, in fact they are happy with the rates,” she added. — Ashley Erika O. Jose