The six-month suspension meted by the Office of the Ombudsman against the chairperson of the Energy Regulatory Commission (ERC) is seen delaying the approvals of pending power supply agreements (PSAs) as well as the reserve price-setting for the auction of renewable energy (RE) capacities that are slated this year and 2025.

As of press time, ERC Chairperson Monalisa C. Dimalanta stated that she has not received an official copy of the decision yet, hence, she defers giving any comment at this point.

In a copy of the Ombudsman’s ruling released to the media, it was stipulated that the suspension shall be for “immediate implementation” – and copies had been furnished to the Office of Executive Secretary Lucas Bersamin and the Office of the President.

Owing to this development, industry sources indicated that the chief regulator’s suspension would have sweeping impact to the industry – especially on warranted approvals of supply deals so consumers can be spared from the brunt of rate spikes as well as probable brownouts or service disruptions, especially during the summer months.

The universe of pending cases and applications needing immediate ERC action and approvals.

There are also apprehensions being sounded off by the league of renewable energy (RE) investors, because if the ERC cannot act immediately on the warranted green energy auction reserve (GEAR) prices for the scheduled RE capacity auctions, that will also hamstring the targeted flow of billion-dollar investments for RE projects.

The green energy auction (GEA) for hydro and geothermal capacities is scheduled by the fourth quarter this year; and by 2025, another round of RE capacity bidding with integrated energy storage system (RE) will have to be carried out also by the DOE; and these slated tendering processes  shall be underpinned by the GEAR prices to be drawn up by the ERC.

The function of the regulatory body will be very crucial in the RE bid process, because investors will not stake fresh capital in the industry without ERC-prescribed tariffs that will guarantee revenue stream in the long-term power supply agreements (PSAs) to be underwritten in the GEA-awarded capacities.

It is not known yet who will take over as officer-in-charge at the Commission once the order on Dimalanta’s suspension will be enforced; and what will be the pace of the ERC’s work in its Chairperson’s absence.

In a recent budget presentation in the House of Representatives, the regulatory body presented that it has roughly 2,700 applications pending for its deliberations and approval – and a significant chunk of that at 447 cases are PSAs that are up for public hearings and resolution.

There are also 635 consumer-complaints needing regulatory action; and the rest comprise of 362 petitions relating to under- and over-recoveries of power utilities; then 257 cases of capital expenditure (capex) projects and 201 applications for rate adjustments.

Apart from pending cases, the deliberations on ERC’s budget for 2025 are also ongoing both in the House of Representatives and the Senate; and the head of the agency is typically needed in defending that.

The other key items in the ERC’s to-do list likewise cover the proposed amendments to the Electric Power Industry Reform Act (EPIRA) that primarily delves with the propounded strengthening of the regulatory agency’s function and structure; as well as the performance audit on system operator National Grid Corporation of the Philippines (NGCP) which President Marcos had mandated for completion by the end of this year.