The Energy Regulatory Commission on Sunday defended allegations of “extravagant trips” made by its officials using funds from Philippine Electricity Market Corp., operator of the Wholesale Electricity Spot Market.
The ERC said in a statement over the weekend the travels were “legitimate and necessary” to build the technical knowledge of its personnel in the complex power industry.
“The complex nature of the restructuring process and the subject matter of electricity markets require trainings and meetings of the members of the Commission and personnel aimed to build their technical understanding and capacity, enhance and advance their knowledge and appreciation on current dynamics and emerging issues in electricity markets and the deregulated industries,” the regulator said.
Malacañang on Friday asked the ERC to explain accusations that its commissioners committed “serious dishonesty, gross neglect of duty, and grave misconduct,” following a complaint lodged by the United Filipino Consumers and Commuters led by president Rodolfo Javellana Jr.
The UFCC earlier accused ERC officials of using funds from PEMC to finance their trips abroad.
“The travels in relation to these are therefore legitimate and necessary, not directly paid to these agencies but instead earmarked, appropriated, and disbursed in accordance with their instructions. All expenses have been accounted for, disbursed and liquidated in accordance with PEMC Rules,” the ERC said.
The regulator said significant reforms in the electric power industry were adopted in June 2001 through the passage of Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001.
“The role of the regulator—ERC—in the restructuring process is critical since its mandate remains extremely challenging,” it said.
The ERC said it established the competitive framework of the electricity sector to promote competition, encourage market development, ensure customer choice and penalize abuse of market power.
“Specifically, the ERC formulated rules and regulations necessary to govern the deregulated sectors of the industry, and set up the regulatory framework for the establishment of the electricity markets—a sector that the ERC is mandated to closely monitor, as well,” it said.
It added that the charge imposed by PEMC in administering the WESM was subject to the approval of the ERC in the form of market fees.