ERC SEEKS RECONSIDERATION: ‘Budget cut to affect regulatory functions’

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The Energy Regulatory Commission (ERC) will seek for a reconsideration of its budget for next year which was slashed by almost half from its proposed amount.

ERC said a small budget will greatly limit the functions of the body.

ERC’s proposed budget for 2022 is at P987.46 million but only P586.52 million was approved. The approved amount is almost half of this year’s ERC budget of P1.006 billion.

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In a virtual hearing at the House of Representatives yesterday, Agnes Devanadera, ERC chairperson, said the P400 million that was slashed from the proposal will \affect how the agency will perform its function especially in the middle of an ongoing pandemic.

“We are seeking reconsideration for the budget that was removed, not approved by the DBM (Department of Budget and Management) because these are very, very important to us and without this additional budget, we will not be able to sustain travelling expenses, which are needed in the conduct of public hearings, regulatory visits, inspection and meter testing,” Devanadera said.

Devanadera added the amount that was cut from the budget was supposed to enable ERC to continue work-from-home arrangements, conduct information and communication technology repairs and maintenance, provide shuttle services to employees and finance the general budget for utilities, training and supplies.

The ERC said without the P400 million, it will not able to hire additional employees as the regulatory body only has 456 personnel that enforces 116 retail electricity suppliers, 141 distribution utilities, over 500 generating facilities and more than 20 million power customers.

Meanwhile, Devanadera said that the ERC is currently in the last phase of computing penalties for eight cases found of violating power sector rules.

“We are done with about eight, we have finalized evaluation of the facts, we are now in last phase of computing penalties. We expect we will be able to come out with the final resolution within the next two weeks. We have not stopped except that we are a little bit affected as much as everyone, every now and then on the quarantine,” Devanadera said.

Devanadera did not elaborate on the nature of the eight cases but said that they are part of a total of 17 cases that they are currently resolving.

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