ERC orders PECO to explain operational lapses


The Energy Regulatory Commission (ERC) has directed the Panay Electric Company, Inc. (PECO) to explain the apparent operational lapses found by the ERC Inspection Team.

ERC issued an Order on 26 November 2019, which requires PECO’s directors and officers to explain why there shouldn’t be any penalties imposed against them for violating: (1) Philippine Distribution Code (PDC) 2017 Edition; (2) Amended Distribution Services and Open Access Rules (DSOAR); (3) Amended Elevated Metering Center (EMC) Rules; and (4) ERC Resolution No. 12, Series of 2009 (Guidelines for the Accreditation of Satellite Laboratories of Meter Shops). 

“Based on the findings of the ERC technical team that conducted the ocular inspection on the electric distribution system of PECO, the latter committed lapses in the operations and maintenance of its distribution system thereby posing danger and risks to the lives and properties of its consumers,” ERC Chairperson and CEO Agnes VST Devanadera was quoted in a statement.

The ERC Inspection team found out that the electric cooperative’s protective devices were not properly rated and designed; some poles were found leaning and in unsafe positions; and some meters were found to be clustered and installed in an Elevated Metering Center (EMC) without securing prior ERC approval.

Adding to that, the Certificate of Authority (CA) for PECO’s meter shop expired on November 18, 2019, which PECO did not apply for a renewal.

“PECO must submit its explanation within 15 days from receipt of the Commission’s Order pursuant to the relevant provisions of the Electric Power Industry Reform Act (EPIRA).  We need to accord PECO the opportunity to explain its side before we evaluate the extent of their liability for the operational lapses that were discovered”, ERC Chair Devanadera averred.