Energy Secretary Raphael Lotilla | CONTRIBUTED PHOTO
Energy Secretary Raphael Lotilla expressed concern over the suspension order against Energy Regulatory Commission (ERC) Chair Monalisa Dimalanta, but he remained optimistic that the issue would be resolved soon as the agency is crucial in promoting the power sector.
“The concern, of course, is there,” the energy chief told reporters in a chance interview when asked about the possible impact of the suspension order on pending cases at the ERC.
“As you know, we have worked hard with chairman Mona Dimalanta to introduce changes that would facilitate the approvals of projects,” he said.
Lotilla said he was “hopeful” that the case would be addressed, as he stressed the critical role of the ERC in ensuring projects would be implemented as planned.
The government official did not specify which projects or programs could be affected by this development, but he said the Department of Energy (DOE) was “facing a number of decisions” that should be made by the ERC.
“We look forward to this being resolved so that we can resume working, especially on the new projects that the President has envisioned for the country. So whether they’re conventional or renewable or new forms or new sources of energy, we need the Energy Regulatory Commission on board,” he added.
One of the initiatives to accelerate the growth of renewables in the country is the DOE’s Green Energy Auction program, with fresh biddings expected to happen by the latter part of 2024 and next year. The ERC is tasked to set the GEAR (Green Energy Auction Reserve) prices.
The Office of the Ombudsman slapped Dimalanta with a six-month preventive suspension over a complaint filed by a consumer group, caused by the agency’s alleged failure to recalculate Manila Electric Co.’s rates.
In an earlier statement, Dimalanta said her team was exploring all legal remedies.
She also reminded consumers and stakeholders in the sector to “remain vigilant and put a close watch on the decisions, actions of the Commission.”
Since the news surfaced last week, several groups have rallied behind Dimalanta, including members of the Philippine Independent Power Producers Association and the Association of Philippine Diesel Power Plants Inc. (APDPPI).
“The suspension of the ERC Chairperson sends a negative signal to the local and international community on the stability of the regulatory environment. This is alarming, especially during this pivotal time where we actively pursue critical reforms that address concerns on energy security and reliability to attract more investments into the Philippine energy sector,” APDPPI said in a previous statement.