Senator Pia Cayetano led a review of the decades-old Electric Power Industry Reform Act (EPIRA) of 2001 on Thursday, Oct. 17 I a bid to strengthen the Energy Regulatory Commission (ERC).

Senator Pia Cayetano (Senate PRIB)

She says this is in response to the pressing need to review and update the decades-old law amid persistent challenges in the power industry, including frequent outages and high electricity costs.

"Our goal is that people have access to electricity in a reliable manner. And not on intermittent energy. We need our regulatory bodies to react quickly and not three years later and not five years later," she said.

Cayetano, who chairs the Senate Committee on Energy, focused on critical issues plaguing the energy sector, particularly the regulatory processes of the ERC. Participants scrutinized the causes and impacts of prolonged decision-making in regulatory matters, which have led to significant delays.

Stakeholders also voiced their concerns about the complex and time-consuming nature of ERC's regulatory mechanisms, highlighting the need for streamlined procedures. These issues were identified as major roadblocks in achieving an efficient and responsive power sector.

"This measure will provide for more efficient regulatory practices," Cayetano explained.

"Our goal is to ensure a dependable energy supply and, ultimately, achieve energy security for our country," she underscored.

Cayetano reiterated her commitment to balancing the interests of all stakeholders while prioritizing consumer welfare.

"It is urgent for us to pass the bill that empowers, regulates, and streamlines the ERC’s roles, jurisdictions,” she said.

President Marcos mentioned the possibility of amending the EPIRA in his third State of the Nation Address (SONA) last July 22 and urged Congress to look at this matter.

Meanwhile, Senator Sherwin Gatchalian, who was also present during the hearing, sought from ERC officials concrete solutions to eliminate delays in regulatory approvals which, he said, was critical to ensure efficient power industry operations. 

Gatchalian highlighted the impact of delays in the ERC’s approval processes and the resetting of rates, stressing the need for urgent reforms. 

“The reset is one of the most important activities of the Energy Regulatory Commission because it determines the appropriate rates that entities should charge," Gatchalian explained. 

He said timely rate resets provide opportunities to lower electricity rates, benefitting consumers by adjusting the variables in the regulatory formula.