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ERC: Increasing commissioner roster may not expedite resolution of cases

ERC: Increasing commissioner roster may not expedite resolution of cases – BusinessWorld Online


      
      
      
      
      








THE Energy Regulatory Commission (ERC) said that increasing the number of commissioners may not necessarily expedite decision-making process, but could worsen the gridlock at the commission.

“An increase in the number of Commissioners does not necessarily correlate with a higher resolution rate of cases, nor does it facilitate expedited decision-making. Instead, it is likely to institutionalize gridlock,” the regulator said in a position paper on a proposed ERC restructuring submitted to the House of Representatives.

Created under the Electric Power Industry Reform Act (EPIRA) of 2001, the ERC is an independent, quasi-judicial regulatory body that ensures the adequate promotion of consumer interests and customer choice in the power industry.

The five-member body also promotes competition and penalizes abuses of market power.

The ERC, under newly installed chairman Francis Saturnino Juan, said that increase in the number of commissioners may result in “more protracted debate, deeper divisions, and greater challenges in achieving the majority consensus necessary for critical decisions.”

“This reform addresses a non-existent problem while creating a new one,” the commission said.

President Ferdinand R. Marcos, Jr. sought a review of EPIRA to address issues surrounding the energy industry.

Then-ERC chairperson Monalisa C. Dimalanta said legislators are considering a move to nine commissioners to address regulatory delays.

The ERC said that its case backlogs and regulatory uncertainty stemmed from “deeper, non-structural ailments” such as internal conflicts and lack of continuity and accountability.

It said that the commission’s effectiveness lies in consensus-building and “strong, unifying leadership from the Chairperson.”

“When this is absent, decision-making paralyzes, leading to the indecision and delays that have become characteristic. The problem was not the number of commissioners, but the quality of their collaboration,” the ERC said. — Sheldeen Joy Talavera

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