Gatchalian assails ERC for failure to regulate DUs; urges DOE to review policies

PHILIPPINES, March 25 - Press Release
March 25, 2023

Gatchalian assails ERC for failure to regulate DUs; urges DOE to review policies

Senator Win Gatchalian assailed the Energy Regulatory Commission (ERC) for its failure to efficiently regulate distribution utilities (DUs) and ensure affordability of electricity rates, to the detriment of consumers.

"A regulator is supposed to protect consumers but if you're saying our distribution utilities are operating without approved power supply agreements and are charging generation rates beyond what is allowed, how can we be confident of our own regulator? Submit to us an action plan on how to prevent this from happening again moving forward because it doesn't say good things about our regulator," Gatchalian told ERC officials at a recent Senate hearing conducted by the Committee on Energy.

The committee, for which Gatchalian serves as the vice-chair, tackled the case of San Fernando Electric Light and Power Company, Inc. (SFELAPCO) in Pampanga, which was recently ordered by the ERC to pay its consumers a P654.4-million refund for excess charges collected from January 2014 to December 2020. The ERC also imposed a P21.6 million penalty on SFELAPCO for passing on to consumers a generation rate which has not been approved by the ERC.

During the hearing, it was revealed that there are more than 20 DUs in the country operating without approved PSAs, prompting Gatchalian to call on ERC to resolve the situation and submit an appropriate action plan.

"Paano nakalagpas ito sa inyo?" Gatchalian asked the ERC, in reference to its Resolution No. 17 series of 2009 which requires all DUs to submit every month their calculations on generation rates, system loss rates, and mandated rate reduction, among others.

At the same hearing, Gatchalian asked the Department of Energy (DOE) to review its policy of allowing DUs to maintain indirect membership to the Wholesale Electricity Spot Market (WESM). In the case of SFELAPCO, its indirect membership in WESM prevented it from contracting power supply on the spot market which resulted in higher distribution costs to the detriment of consumers in San Fernando, Pampanga.

"The problem is the indirect membership. I suggest that you review that policy because it can be a loophole moving forward," Gatchalian told DOE Assistant Secretary Mario Marasigan.

Gatchalian emphasized that the indirect WESM membership also gave SFELAPCO a reason to ask for an exemption from the Competitive Selection Process (CSP). "You tied your own hands since if you don't give SFELAPCO an exemption from CSP, magbabrownout doon," said Gatchalian, noting that all DUs should be reminded that they should strictly follow the rules because in this case it was SFELAPCO that was remiss in its responsibility.

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Paglikha sa National Education Council muling ipinanukala ni Gatchalian

Upang mapaigting ang ugnayan ng mga polisiya sa pagitan ng tatlong ahensyang pang-edukasyon, muling inihain ni Senador Win Gatchalian ang isang panukalang batas na lilikha ng National Education Council o NEDCO.

Sa ilalim ng Senate Bill No. 2017 o ng National Education Council Act, nililikha ang NEDCO upang magkaroon ng institutionalized na sistema ng pambansang ugnayan, pagpaplano, pagmonitor, pagrepaso, at pamamalakad sa pagitan ng Department of Education (DepEd), Commission on Higher Education (CHED), at Technical Education and Skills Development Authority (TESDA).

Layon ng panukalang batas na magkaroon ng national education agenda na ibabatay sa mga pambansang planong pangkaunlaran. Isasaad sa national education agenda ang strategic vision ng bansa sa edukasyon, mga layunin, estratehiya para sa maayos na pagpapatupad ng mga programa, at mga rekomendasyon sa usapin ng pondo.

Kabilang sa mga magiging kapangyarihan ng NEDCO ang pagpapatupad ng mga hakbang upang magkaroon ng mataas na marka ang bansa sa mga assessment gaya ng National Achievement Test, Programme for International Student Assessment, Education Index, Education for All Development Index, at iba pang mga sukatan para sa growth at development sa sektor ng edukasyon.

Sa ilalim ng panukalang batas, ang Pangulo ang magiging Chairperson ng NEDCO at magiging Co-Chairpersons naman ang DepEd Secretary, CHED Chairperson, at TESDA Director-General. Magiging miyembro din ng NEDCO ang Speaker ng Mababang Kapulungan, Pangulo ng Senado, at ilang mga miyembro ng Gabinete.

Sa muling pagbuhay ng panukalang paglikha sa NEDCO, binalikan ni Gatchalian na nirekomenda ng 1991 Congressional Commission on Education (EDCOM) ang paglikha ng isang coordinating body kasunod ng pagkakahati sa tatlong sub-sector ng sistema ng edukasyon sa bansa. Bagama't naging mas tutok ang tatlong sub-sector sa kanilang mga sariling programa, pinuna naman ng Presidential Commission on Educational Reform (PCER) noong 1998 na nagdulot ito ng mga posibleng overlaps, gaps, inconsistencies, at kawalan ng ugnayan sa mga polisiya, plano, at mga programa.

"Sa pamamagitan ng ating panukalang bumuo ng National Council for Education, mapapaigting natin ang ugnayan sa iba't ibang tanggapan ng pamahalaan upang maiangat ang kalidad ng edukasyon sa ating bansa," ani Gatchalian, Chairperson ng Senate Committee on Basic Education.

Nakasaad din sa panukalang batas na magkakaroon ng five-year horizon ang national education agenda na taon-taong rerepasuhin ng NEDCO.