DOE supports amendment of EPIRA to empower ERC

DOE-ERC 2023

The Department of Energy (DOE) is looking to amend Republic Act 9136, also known as the Electric Power Industry Reform Act  (EPIRA) of 2001, to empower the Energy Regulatory Commission (ERC) with more robust enforcement measures against non-compliance with regulations.

Energy Secretary Raphael Lotilla, as reported by the Philippine Star, mentioned that the DOE is currently examining the details of the proposed modifications and assessing the need for any necessary reforms within the ERC.

Lotilla further highlighted that the energy department is in favor of additional amendments to the EPIRA that would aim to enhance the performance of distribution utilities and the National Grid Corporation of the Philippines (NGCP), the transmission concessionaire.

The energy secretary also stated that performance standards would be established for several industries, including the NGCP, distribution facilities, and generation plants, which the DOE is figuring out with the ERC. 

Furthermore, he noted that the DOE also wants the EPIRA revisions to make clear the Philippine Competition Commission’s (PCC) authority in the energy sector, particularly concerning the ERC. 

The task of ERC under EPIRA is to encourage market development, ensure customer choice, penalize the abuse of market power, and promote healthy competition in the energy industry. 

The Marcos government is addressing the ERC’s low pay levels while simultaneously recognizing the ERC’s crucial role, Lotilla said. 

The energy chief explained that the ERC is exempted from the standardization of salaries law at the moment, and since 2018 has not seen any adjustment in salaries, so the current administration is working on increasing the salaries. 

He added that the rise in compensation adjustment for the ERC staff has the support of Budget Secretary Amenah Pangandaman. 

The ERC, under the guidance of Chairperson Monalisa Dimalanta, is dedicated to ensuring the provision of sustainable and affordable electricity through transparent and accountable policies. 

With the goal of becoming a center of excellence in the ASEAN region, the ERC is actively exploring innovative approaches to crafting and enforcing regulations within the electric power industry.