The testimony of an Energy Regulatory Commission (ERC) official before a Senate hearing was quite revealing. The regulatory body primarily relies on desk monitoring—wherein companies are required to submit a report on the conditions of their plants—rather than conducting physical inspections in overseeing power companies. 

This practice, while convenient for the government regulator, may inadvertently contribute to lax compliance with regulatory measures, potentially exacerbating recurring power issues in the country. It could also leave the ERC and the public in the dark on the actual power situation.

No doubt, the country continues to experience frequent power interruptions. On April 16, 2024, for instance, 35 unplanned outages in Luzon, 48 in Visayas, and 10 in Mindanao were logged, with red and yellow alerts hoisted over power grids in Luzon, Visayas, and Mindanao.

The current ERC monitoring practice is risky. As Senator Francis Escudero pointed out during the hearing, no company would ever declare something that is against its interests. “They will say everything is good and dandy. It’s good if they will declare against their interests and say that there’s something wrong with their plant, but they usually don’t,” the senator said.

To address this critical gap and enhance regulatory efficiency, rigorous physical inspections are necessary to ensure reliable power services. Crucial here is the allocation of resources for regular, on-site inspections of power plants, substations, and distribution facilities. These inspections would assess infrastructure conditions, safety protocols, and compliance with environmental standards.

By physically examining power facilities, potential risks, maintenance needs, and operational deficiencies can be identified and immediately addressed. This proactive approach will prevent issues before they escalate.

Risk-based assessment is another crucial measure. Inspection priority should be based on risk factors. High-risk facilities—aging plants or those with a history of non-compliance—should receive more frequent scrutiny. Risk assessments should consider factors like plant age, location, capacity, and historical performance. This targeted approach ensures efficient resource allocation.

Another vital approach to ensure efficient power service is transparent reporting and accountability. Power companies must submit comprehensive reports on their operations, maintenance practices, and compliance status. However, these reports should be publicly accessible to promote transparency. The ERC, on the other hand, should publish an annual report summarizing inspection findings, regulatory actions taken, and areas for improvement. This transparency holds both regulators and power companies accountable.

With the digital environment, leveraging technology is another crucial approach that should be undertaken. Utilizing digital tools can help revolutionize monitoring and reporting. Remote sensors, real-time data analytics, and predictive maintenance systems can identify issues early. Investing in a centralized database for tracking compliance records, inspection schedules, and incident reports is vital. Automation reduces paperwork and streamlines processes.

Efficient regulation requires a holistic transformation—one that combines physical inspections, risk-based assessments, transparency, and technology. By embracing these strategies, safeguarding the nation’s power supply and promoting sustainable economic growth can be attained.

Let’s all keep in mind that a well-regulated power sector benefits not only consumers but also the entire country, thus, ensuring a brighter future for all. So, let us collectively advocate for a resilient and efficient energy landscape.