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POWER NEWS
The
OFFICIAL NEWSLETTER OF THE ENERGY REGULATORY COMMISSION
VOLUME I NO. 2 DECEMBER 2003
Mga pinuno ng ERB/ERC It’ s
It’s
pinarangalan C hristmas
Sinulat nina Jojo Braza at Edwin Orogo
Let’s
Time! Let’ s
art
P arty!
By Roshella O. Faberes
I
t’s barely a month to go before the year
draws to a close and at ERC every divi
sion is still beating the deadlines. De-
spite all the year-end rush, ERC employees
are looking forward to a well-deserved break
from all the pressures of work. And for 2003,
this break comes in the form of the Christ-
mas Celebration slated on Friday the 19th.
The celebration’s off-house venue has
been reserved as early as August and the
different task committees have been estab-
lished since late September. The program and
Kuha ang larawan nang pasinayaan ang mga larawan ng mga dating namuno sa ERB/ERC mula sa invitations has been assigned to the Regu-
kaliwa; Komisyoner Carlos R. Alindada, G. Onofre Barin, Kgg. Rex V. Tantiongco, Kgg. Melinda L. latory Operations Service. The Planning and
Ocampo, Kgg. Ponciano G.A. Mathay, Chairman Manuel R. Sanchez, Gng. Luningning Faylona-
Information Service is coordinating the
Lacuña, Kgg. Fe B. Barin, Atty. Donato Faylona, Komisyoner Leticia V. Ibay at Komisyoner Jesus N.
Alcordo. games and competitions while the Market
B
Operations Service is in-charge of prizes and
inigyan ng parangal ng Ang pinaka-unang namuno mula pa sa awards. The Financial and Administrative
kasalukuyang pamunuan ng ERC panahon ng Oil Industry Commission na si Service has been tasked with the registra-
ang mga dating chairpersons ng Hon. Mathay ang unang nagbigay ng tion, physical arrangement and mobilization.
ERB/ERC noong Nobyembre 24, 2003 talumpati. Kahit na nagkaedad na si Hon. The Legal Service will organize food and
pagkatapos ng flag ceremony. Mathay, madali pa rin siyang nakilala ng mga beverage provisions and Consumer Affairs
Natuwa ang mga kawani nang makita kawani na noon pa lang siya nakita. Guwapo Service is designated as the first aid commit-
nila ang kanilang mga dating lider. Apat sa at matipuno pa rin siya tulad ng sa litrato tee for the day-long activity.
pitong nakalipas na chairpersons ng Board/ niya na marahil ay kuha pa noong 1970s. Highlights of the affair include a sing-
Commission ang dumalo. Ito ay sina Hon. Si Hon. Tantiongco ang nakatanggap ing contest, an inter-service comedy skit
Ponciano Mathay, Hon. Rex V. Tantiongco, ng pinakamalakas na palakpak. Ayon sa competition, parlor games, a special presen-
Hon. Melinda Ocampo, at si Hon. Fe Barin. kanya, hinahangaan niya si Chairman tation by the Power Voice, a.k.a. the ERC
Lahat sila ay nagpasalamat sa kasalukuyang Sanchez at pinupuri dahil, katulad niya, iniisip Chorale, the launch of the official ERC Hymn
chairman na si Atty. Manuel Sanchez sa nito ang kapakanan ng mga taong kasama and some surprise numbers. Of course, the
parangal at hinimok ang mga kawani na niyang naglilingkod sa taong bayan. party will not be complete without our co-
magkaisa upang gawing mas matatag ang
organisasyon. Continued on page 3 Continued on page 4
Editorial
CONSUMER INTEREST, WELFARE AND PROTECTION
T
he Law gives the Energy Regulatory Commission (ERC) enor- enable consumers to reach the ERC through the popular ‘text mes-
mous responsibilities. One of the major policies called for is saging system”, and the issuance of the Consumer Bill of Rights &
the establishment of a strong and purely independent regu- Obligations.
latory body and system to ensure consumer, welfare and protection, In the present era, where the consumers are restless in their
and enhance the competitive operation of the electricity market. It desire for satisfaction, improvement, and progress, the act of the
provides the specific requirement that the ERC shall handle con- Commission, in coordination with the Electric utilities, in exerting
sumer complaints and ensure adequate protection of consumer in- continuous and speedy search for technology solutions and man-
terests. agement practices for consumer satisfaction and protection is rea-
The Commission is, however, faced with the continuous chal- son enough to be optimistic.
lenge of striking an equitable balance between protecting the inter- In our festive mood this YULLETIDE season, we must not for-
est of the consumer, utility investors and all the other electric indus- get – we have a duty to our country and to our fellow Filipinos.
try players. It bears emphasis that the Commission is in the busi- MERRY CHRISTMAS and MABUHAY TAYONG LAHAT!!!
ness of regulating the electricity business. It behooves the Com-
mission to stay alert, closely monitor developments and adopt regu-
POWER NEWS
The
latory policies that ensure the industry stakeholders of order and
stability in its regulatory processes. The Commission thus
endeavours to perform its combined function – quasi-judicial, quasi- EDITORIAL STAFF
legislative and administrative – consistent with its mandated duties EDITOR-IN-CHIEF/ Fructuoso C. Lagunzad, Jr; ASSOCIATE EDITOR/
and responsibilities. Rodolfo R. Vinluan; ARTIST/ Lino P. Pagkatipunan; STAFF WRITERS/
Consumers protection goes beyond utility compliance with Rolando S. Braza, Sharon O. Montañer, Ronces Anne Reyes, Ricci
performance and technical standard. In some advanced jurisdic- Mejorada, Nimrod M. Pañares, Edwin N. Orogo, Marrilyn M. Ferry, Ranillo
E. Maatubang, Alvin Jones M. Ortega, Alma C. Clemente, Jean Astrid C.
tions where customer satisfaction has been the central focus of Francisco, Rhett Roswell Mislang, Atanacio Dela Roca, James S.
utility business, electric utilities strictly observed the “Customer Juganas, Lisaflor G. Bacani, Judith L. Mangosing, Marives D. Santos,
Service Standard”. In our jurisdiction, the Commission has strived Ma. Corazon C. Gines, Elmar M. Agir, Roshella O. Faberes, Abul Khayr
to adopt measures meant to meet and fulfill the challenge of the Amalon M. Alonto II
demand for consumer satisfaction. These include, among others, MEMBERS OF THE COMMISSION
speedy resolution of consumers complaints, creation of a perma-
nent “Consumer Complaint Desk” at ERC and in all electric utilities CHAIRMAN/ Manuel R. Sanchez; COMMISSIONERS/ Oliver B. Butalid,
and other providers of electric power to oversee the promotion of Leticia V. Ibay, Carlos R. Alindada,Jesus N. Alcordo.
consumer interests, dissemination of rate-related resolutions and The POWER News is a publication of the Energy Regulatory Commis-
decisions through the ERC website and the media, the TEXT-ERC to sion produced by the Public Information Division.
2 The POWER News December 2003
South Asia regulators visit ERC
D
elegates to the World Energy Sum-
mit held in Manila from South Asia
visited the Energy Regulatory Com-
mission to learn from its regulatory experi-
ence. Commissioner Leticia V. Ibay led the
briefing, with the able support of Sharon
Montañer and Jojo Braza from the Planning
and Information Service (PIS).
The group was given a background on
Philippine electric power industry and how
ERC is proceeding with its regulatory func-
tions.
The organization of the ERC was exten-
sively discussed, followed by an update on
the milestones and achievements of the ERC meets South Asia guests. Standing (L-R) Dir. Anthony Alden AguIlar (ROS), Jojo Braza
Commission. Commissioner Leticia V. Ibay (PIS), Hussnain Zaigham Alvi (Pakistan), Loc Man Maskey (Nepal), T.N. Thakur (India), Zubair
concluded the meeting by enumerating the Javed (Pakistan), Ashwani Rapir (India), Priyantha Wijayatunga (Sri Lanka), Murali Pokhrel (Nepal)
regulatory challenges faced by the Philip- and .A.L.W.A. Perera (Sri Lanka). Sitting (L-R) Fel Limos, Begum Mahmuda (Bangladesh), Ericka
Monger (U.S.E.A.), Comm. Leticia Ibay (ERC), Bang Chingcuanco (Gabrielle) and Sharon Montañer
pines in the light of developments in the (PIS).
economy and the electric power business.
The group was interested in the organi- The delegates expressed their gratitude and regulatory reforms in their respective
zation of the ERC and how it relates to the for the reception given to them by ERC and jurisdictions. - RSB
other agencies involved in the development for the vital information they gathered to give
of the electric power industry. them a jumpstart in implementing industry
Masaya at lubos na nagpasalamat si Mababakas sa mukha ng mga dating
Mga Pinuno... from page 1
Chairman Sanchez sa lahat ng dumalo lalo chairpersons ang pagkagalak na muli silang
Si Hon. Ocampo naman ay na sa mga dating chairpersons. “Ang makabalik sa opisina ng ERC. Damang-dama
nagpasalamat sa lahat ng nakasama niya dedikasyon at pamumuno ng mga dating pa rin nila ang pagiging bahagi ng
noong siya pa ang namumuno ng ahensya. lider ang nagdala sa organisasyon sa estado organisasyon. Ilan sa kanila ang humiling
Inamin niya na hindi naging madali ang nito ngayon at magsisilbing inspirasyon sa na mapadalhan sila ng kopya ng mga litrato
trabaho noong panahon niya, ngunit lahat kasalukuyan at sa darating pang mga kawani na kinuha habang ginaganap ang parangal.
ng kanilang ginawa ay para sa kabutihan ng nito,” sabi ni Chairman Sanchez. Pinabaunan ng Public Information Ser-
nakararami. Hindi lamang siya napakatalino, Sa isang simpleng salu-salo sa ERC vice ng isang kopya ng kanilang larawan ang
napakaganda pa. Board Room, nagkaroon ng pagkakataon na bawat chairperson at kamag-anak na dumalo.
Ang tinitingalang ina ng ERC na si Hon. makapag palitan ng karanasan sa ERB/ERC
Barin ay ibinalik din ang parangal sa lahat ang mga dating pinuno ng Board/Commis-
ng naka trabaho niya sa bagong ahensya at sion.
hinimok ang mga kawani na ibigay ang lahat
ng kanilang makakaya para matupad ang
lahat na layunin ng buong organisasyon.
Si Hon. Neptali Franco ay hindi nakadalo
pero ipinaabot niya ang kanyang mensahe
sa pamamagitan ng isang liham. Sinabi niya
na isang magandang proyekto itong naisip
ni Chairman Sanchez. Si Hon. Marcelo
Fernando naman ay may sakit kaya hindi rin
nakarating. Si Hon. Bayani Faylona na
pumanaw na noong taong 2001 ay kinatawan
ng kanyang kapatid na si Lunigning Faylona- Ang mga larawan ng mga namuno sa ERB/ERC ay matatagpuan sa ika-16 na
Lacuña, pamangkin na si Atty. Donato palapag bago pumasok ng ERC Board Room.
Faylona, at kaibigan na si Onofre Barin.
December 2003 The POWER News 3
ERC DISCOVERS FAKE METER SEALS AND
FALSIFIED TEST REPORTS
By Atty. Marizon Gines
O
n October 22, 2003, ERC engineers should be noted that no 2003 meter seals The ERC’s Visayas Field Office also
confirmed the existence of electric have been manufactured and released by found a fake ERC meter seal and falsified test
watt-hour meters bearing fake ERC ERC. report on August 11, 2003.
meter seals and falsified meter test reports. On June 12, 2003, while on field assign- To complement its drive, ERC also met
Consumer Affair Service personnel posed as ment at the Public Utilities Department in with electric meter dealers in Metro Manila
buyers to a dealer in Pasay City. Said fake Olongapo City, Engr. Rey Wilson Abesamis and Cebu, on June 26, 2003 and September
meters were immediately brought to NBI for was shown ERC meter test reports purport- 26, 2003 respectively. The purpose of the
the preparation of the documents necessary edly submitted by consumers in support of
in filing the appropriate charges against the the installation of electric watt-hour meters
perpetrators. in their respective premises. The incorrect
The Energy Regulatory Commission entries in the meter test reports and the sig-
(ERC) has recently discovered the prolifera- nature of the ERC engineer who allegedly
tion of fake ERC meter seals and falsified conducted the testing prompted him to be-
meter test reports in the Luzon and Visayas lieve that these meter test reports were spu-
areas. rious. Upon verification, it was found that
The first recorded incident was on June the signatures affixed therein did not match
3, 2003 when a customer brought his electric those of present ERC nor former ERB engi-
watthour meter to the ERC Meter Labora- neers.
tory for testing. Engr. Froilan Mangosong, said meetings was to appraise them of the
the engineer assigned to perform the test- Commission’s exclusive authority to perform
ing, found a fake ERC meter seal attached to meter testing and sealing. Pursuant to Com-
the meter, which bore a 2003 mark and in- monwealth Act Nos. 146 and 349, the ERC
scribed with the words “Metro Manila”. It has the exclusive authority to test and seal
electric watt-hour meters before they are
placed in service. The ERC meter seals and
test reports guarantee that the meter has been
tested by ERC and that it will register accu-
rately the electric consumption of the electric
meter user. The Commission likewise solic-
ited their assistance in preventing the prolif-
eration of these illegal activities.
Left most photo shows
two of the four watt-
hour meters with fake
It’s Christmas... from page 1
lead seals and test
employees coming over from our Cebu and reports. Center photo
Davao field offices. the fake lead seal,
Though a Christmas family event was while top photo shows
the fake test reports.
previously planned, a simple yet fun-filled
Bottom photo shows
festivity will instead be observed due to NBI personnel
budgetary constraints. Nevertheless, it will inspecting the
still be a celebration of peace, hope and love, evidence gathered by
a season for counting and sharing our bless- ERC Team.
ings and a time for family and fellowship re-
gardless of diverse spiritual denominations.
4 The POWER News December 2003
ERC OFFICIALS ATTEND ELECTRICITY
MARKET COURSE IN LONDON
S
everal ERC official were invited to at-
tend “Competitive Electricity Market
Regulation Course” held at Central
London and Chester, England from 20-28
October, 2003 which was made possible in
cooperation with EA Technology
Consultancy through the auspices of the U.
K. government through its Department of
Trade and Industry (DTI). Director Edgar F.
Samonte, Atty. Debora Anastacia T. Layugan
of the Market Operations Service, Director
Anthony Alden S. Aguilar and Ms. Ellen C.
Aguila of the Regulatory Operations Service
attended the said training course. The train-
ing was intended to enhance the technical
competence and expertise of said officials
specifically in the field of competitive elec- From left to right: Atty. Debora Anastacia T. Layugan, Ms. Ellen C. Aguila, Dir. Anthony Alden S.
Aguilar, Ms. Samantha Edwards of Elexon, the Market Operator and Dir. Edgar F. Samonte.
tricity market and in anticipation of the es-
tablishment of the Wholesale Electricity Spot by these entities followed by round table The training was concluded by a course
Market in the country. discussions and clarifications on the issues summary conducted by the EA Technology
The structure of the training course presented. The talks included, among oth- in Chester, North of England. EA Technol-
mainly focused on visits made to the U.K ers, an overview of U.K’s energy industry ogy is an independent company with exten-
energy industry counterparts such as the with lectures focused on its wholesale mar- sive experience of providing strategic, eco-
U.K. Regulator, the Market Operator, the ket structure and trading arrangements. nomic and engineering consultancy services
System Operator and such other industry Parellelisms were made on the existing mar- in the electricity markets worldwide.
players as the large generation and distribu- ket conditions and structures in the U.K. vis-
tion companies. Lectures were conducted à-vis the Philippine Mode.
ERC Visayas moves to a new office
By Edwin N. Orogo and Joel Bontuyan
T
he Energy Regulatory Commission According to Atty. Bontuyan, the trans- Complex with excellent security and other
(ERC) field office in Cebu City re fer to the new offie was done with the help amenities available to its employees.
cently moved to the National Trans- of Jules S. Alcantara, TRANSCO’s Opera- The ERC staff is temporarily housed at
mission Corporation (TRANSCO) Complex tions and Maintenance manager. Jay Marvin the former Regional Control Center of
in Talamban, Cebu City. Saso, also of TRANSCO and a long-time TRANSCO until the new ERC office inside
“We are thankful for the support of our friend of Atty. Bontuyan, also assisted in the Complex is finished. “We are finally in a
Honorable Chairman Manuel R. Sanchez in the transfer of office equipment. place that we can be proud to call ERC’s veri-
this development. This move has boosted The TRANSCO Complex is a sprawling table home in the Visayas,” said Atty.
the morale of our staff and will surely help property of hilly terrain located in the bound- Bontuyan.
improve our services to the people in the ary of Cebu City and Mandaue City. It is
area,” said Atty. Joel Y. Bontuyan, Officer- about 9 kilometers away from the former of-
In-Charge of the field office. fice in Osmeña Boulevard. It is a well-kept
December 2003 The POWER News 5
Chairman Sanchez Nagdiwang
ng Kaarawan
Ni Lino P. Pagkatipunan
M
asayang ipinagdiwang ni Chair-
man Sanchez ang kanyang ika-62
kaarawan na kauna-unahan niya
bilang tagapangulo ng ERC. Dahilan sa
tumapat ng Sabado ang ika-25 na siyang
tunay na petsa ng kanyang kapanganakan,
ipinasiya niyang gawin na lang ito ng
Biyernes na ika-24 ng Oktubre. Ang okasyon
ay dinaluhan ng kanyang mga kaibigan sa
larangan ng energhiya, pangangalakal at
pamahalaan. Ang mga kawani ng ERC ay isa-
isang nagpugay, nag-alay ng handog,
pagbati at gayun din ng pasasalamat sa nga
mabuting nagawa niya sa ahensya.
Maliban sa masaganang pagkain, ang
mga panauhin ay nagpakuha ng larawan
kasama ni Chairman Sanchez upang maging
paalala sa kaganapan sa mga darating na
araw. Kabilang sa mga mahalagang panauhin
ay ang Speaker ng Kongreso na si Jose De
Venecia at gayun din ang mga batikang
Senador na sina Manny Villar at Robert Bar-
bers. Sinamantala ng mga kawani ng ERC
ang pagkakataon upang makapagpakuha ng
larawan kasama ang Speaker at ang
dalawang Senador. Bagamat hindi nakarating
si Pangulong Gloria Macapagal-Arroyo dahil
sa marami niyang mahahalagang gawain,
nagpadala naman ito ng ala-ala at pagbati.
Para kay Chairman Sanchez, magdiwang
ka sana ang marami pang kaarawan!
Makikita sa mga larawan ang masasayang kaganapan noong
nagdiwang si Chairman Sanchez ng kanyang kaarawan.
6 The POWER News December 2003
December 2003 The POWER News 7
ERC reaches out to LRT/MRT commuters
T
he Planning and Information Service (PIS) worked in tandem proached the consumer desk at the MRT station at Shaw Boulevard
with the Consumer Affairs Service (CAS) to launch an infor and claimed that there was no need for the ERC. He said that all that
mation campaign to let consumers know more about the ERC. is needed to generate energy is water.
Personnel of the two Services set up consumer welfare desks in To prove his point, he got a glass of water and put in it a small
selected stations of the Metro Rail Transport System Line 3 along light bulb. The bulb glowed to the amazement of the four PIS em-
the stretch of EDSA from Taft to SM North on November 27, 2003. ployees. “Wow….maybe we should register him as a Self Gen,” was
The outreach to electricity consumers was extended to the passen- all Sharon could say after seeing the bulb light when put in the glass
gers of the Light Rail Transport system Line 1 running along Taft of water.
Avenue from Baclaran to Monumento the following day. “No need for Taebo today,” said one ERC participant in the
Trains of both lines were filled with ERC posters inviting con- two-day affair. He had to bend left and right to give out leaflets and
sumers to send their queries and complaints using the TEXT ERC primers to consumers rushing in and out of the train station.
facility, the consumer hotlines and the e-mail. Some ERC personnel Those assigned at the Gil Puyat station of the LRT line found
went to the train depot of LRT an hour before midnight of November the whole campaign very tiring, but also found consolation in watch-
28 to install the posters. ing beautiful ladies pass by the station.
“We want to reach out to consumers. The campaign also aims It was indeed a very taxing day for everyone, but everyone
to give our personnel more exposure to the public they serve,” ERC agrees that it was worth it.
Chairman Manuel R. Sanchez said. -RSB
The first day was very amusing for Ricci Mejorado, Ronces
Ann Reyes, Jojo Braza and Sharon Montañer. An old man ap-
8 The POWER News December 2003
ERC, DISTRIBUTION UTILITIES ESTABLISH
CONSUMER WELFARE DESKS
By Atty. Marizon Gines and Atty. Marina C. Bugayong
I
n February 2002, The Energy Regulatory complaints, was made pursuant to the pro- quired the establishment of appropriate
Commission formally created Consumer visions of Section 41 of Republic Act No. guidelines and mechanisms to handle the
Affairs Service (CAS) and ordered dis- 9136, otherwise known as the Electric Power speedy resolution of consumer complaints
tribution utilities to establish their respec- Industry Act (EPIRA). The said law ex- and the creation of a permanent consumer
tive consumer welfare desks on the follow- pressly mandated ERC to promote consumer complaint desk at ERC and in all electric dis-
ing month. interests by handling consumer complaints. tribution utilities.
The Creation on the CAS, a separate To implement such mandate, the EPIRA’s All distribution utilities (DUs) complied
department catering to all types of consumer Implementing Rules and Regulations re- with the directive and went to the extent of
putting up consumer welfare desks even in
their sub-offices.
The basic role of consumer welfare desk
(CWD) officers is to entertain consumer que-
ries and complaints. Consulting with the
CWD officer of the concerned distribution
utility has been made a pre-requisite before
a complaint may be lodged with the Con-
sumer Affairs Service of the ERC to prevent
the unnecessary filing of complaints with the
ERC, as some of these complaints might be
resolved by the concerned DU.
The ERC, in coordination with the Na-
tional Electrification Administration (NEA),
has been going around the different regions
to orient these CWD officers of their func-
tions and responsibilities.
MERALCO Refund: Phase III
By Jean Astrid C. Francisco
I
n compliance to the Order issued by the fund for Active and Terminated Accounts tomer or his authorized representative re-
Commission dated October 7, 2003, covered in Phase III. quests for the termination of his service for
MERALCO submitted its proposed pro- For Active Accounts, the mode of re- whatever reason, the remaining refund will
cedures for the implementation of Phase III fund is similar to Phases I and II where it may be released thirty days after the customer
and IV of the Refund Process on October be an actual cash refund or credit to monthly notifies MERALCO of such request.
24, 2003. bill until the full amount is refunded, at the Similarly, for the Terminated accounts
In the MERALCO proposal, Phase III option of the customers. The refund cover- customers, refund period is the same as the
covers the Residential and General Services age, gross refund kWh and equivalent active accounts based on customer group-
customers who consumed more than 300 amount refundable shall be reflected in the ings to be submitted by MERALCO. The
kWh in their April 2003 bill while Phase IV customer’s January 2004 bill. If the regis- refund mode is cash net of all arrears and the
covers the Commercial and Industrial cus- tered customer or his authorized representa- requirements to claim the cash refund will be
tomers and all other customers not covered tive who earlier opted for credit to monthly the same as in Phases I and II.
in Phase I-III. bill mode of refund requests the suspension The general guidelines and procedures
In the Order dated November 24, 2003, of the crediting of the refund to the bills of adopted in Phase I and II, insofar as they are
the Commission directed MERALCO to re- service for whatever reason, the cash refund applicable, will govern the implementation
fund within six (6) months beginning Janu- will be released thirty days after the customer of Phase III.
ary 1, 2004 until June 30, 2004 the cash re- notifies MERALCO. In addition, if the cus-
December 2003 The POWER News 9
ERC Hymn Composition Contest
C
hairman Manuel R. Sanchez, spon- ERCHYMN “THE POWER IN ME”
sored a contest for the composition Remen G. Rivera ERC HYMN
of the ERC hymn. Take a look at the
entries. Let’s see if you can judge the win- I You are the guiding light
ner correctly. Winner of this contest will re- Great is the ERC Of our countries fight…
ceive P5,000.00, a consolation price of Committed to serve thee To make out thing’s alright…
P500.00 will be given to non-winners. To transform, independently, For you and me…
Electric power industry.
Chorus:
II
We shall fulfill the dream ERC the power of our country
Working as a team ERC the place we want to be…
With competence and integrity ERC the power of the future
We shall treasure your legacy. In our hearts the only one you’ll see.
Chorus: Our vision, will be our mission
With the force of unity
Energy Regulatory Commission A strong and working Commission
Shall aim through its misssion That serves our industry
Energy Regulatory Commission
Shall uphold its vision. Instrumental:
[Repeat I, II raising one step higher] The strength that comes from you
Gives hope to what we do…
With competence and integrity It brigh-ten out our way….
We shall treasure your legacy. To make our dreams come true..
Repeat Chorus:
That works for you… and me…
Composer/Lyricist:
Mr. Faustino C. Castro II
Arranger:
Ms. Crystal & Mr. Von C.
Castro
10 The POWER News December 2003
ERC Hymn
ERC Protects ERCHYMN
Composer/Lyricist/Arranger: Composer/Lyricist/Arranger:
Engr. Susana D. Barrios Engr. Susana D. Barrios
Intro: F- C- G- F- G- C
INTRO: Bm - E - A - F#m - D - E - A F- C- F- G- C
ERC HYMN
From the city streets From the city streets to the
Song & Lyrics by : To the country side country side
RONALDO I. RARELA You light the fire You light the fire of our dreams
Of our dreams From the palace’s hall to a hut so small
You bring the power to our homes
Magagawa natin na paunlarin From the palace’s hall
Ang kuryente sa ating bansa To a hut so small Refrain:
Sa ERC ang aming hngarin You bring the power
Industriya’y palawakin To our homes The way you balance the interest
By balancing the interest Of the people who invest
Sa kanayunan at kabundukan With the nation’s quest for
Kuryente’y aming lalagyan Of those who invest what is best
Aming serbisyo’y maasahan With the people’s quest Lifts the country up to the crest
Kung para sa bayan For what is best
ERC protector of our society ERC protector of the Philippine
Sa ERC ang aming layunin You regulate the electric power Society
Ang kayo’y paglingkuran industry You regulate with efficiency
Mahirap man at kahit mayaman The electric power industry
Kami’y walang kakampihan Not only do you raise the
nation’s economy From the market place to the
Abusado’y aming parurusahan But you promote the welfare of many. house of praise
Kahit sino pa man You bring joy to one and all
Aming prinsipyo at katapatan As you raise the country’s economy
Di kayang bayaran. And promote the welfare of many
December 2003 The POWER News 11
Psalms 119:105 “Your words are a flash-
Literary
Lights, Light, light to light the path ahead of me, and keep
me from stumbling.”
1 Peter 2:9 “God called you out of dark-
lights! ness into his wonderful light.”
Revelation 22:5 “And there will be no
night there—no need for lamps or sun—for
Musings By Edwin N. Orogo
the Lord God will be their light; and they
shall reign forever and ever.”
Distribution of light
S
By Ronces Anne S. Reyes
o many lights greet us during Christ- Those who have accepted Jesus as
mas season. Streets, stores, offices their personal Savior are expected by God
As one scans the horizon and other establishments are filled to become lights to others. It is God’s desire
Above the concrete jungle we with lanterns and all sorts of lights. The elec- to save people from darkness and give them
call home tricity that Meralco and other electric distri- a fulfilling and meaningful existence now and
One wonders why we thrive in a bution utilities provide their customers helps in the future. The Spirit of God helps believ-
poisoned clime make the celebration more colorful and ex- ers to be and do good. He empowers them
citing. to reach out to others and to let them know
As one views the sunsets Instead of tracing its history or doing a of the love of God.
In the famed breakwaters of survey on why many Filipinos love to deco- Acts 13:47 “I have made you a light to
rate with lights this time of year, I thought of the Gentiles, to lead them from the farthest
Manila Bay
studying what the Bible says about lights, corners of the earth to my salvation.”
One wonders why ships set sail Ephesians 5:8 “For though once your
with the hope of finding significance to this
for lands faraway aspect of the Christmas celebration. I hope heart was full of darkness, now it is full of
that you will also find what the Bible reveals the light of the Lord, and your behavior
As one gazes at the rolling vista about this subject interesting and enlight- should show it!”
One wonders why poverty ening. Matthew 5:14-16 “You are the world’s
refuses to leave Generation and transmission of light light—a city on a hill, glowing in the night
Juan de la Cruz’s hearth The Bible says that Jesus Christ came for all to see. Don’t hide your light! Let it
as a light to shine in this dark world. The shine for all; let your good deeds glow for
As one observes events as they eternal life that he brings serves as light to all to see, so that they will praise your heav-
all people. God is the one who calls a person enly Father.”
unfold
to Jesus. Those who believe and put their Whether or not you approve of this tra-
One wonders why chaos rules dition of decorating with so many lights dur-
trust in him will no longer be lost in dark-
institutions ness. They shall not only know the right ing this season, I hope that all the Christ-
In spite of EDSA’s best way to live but have eternal life. His words mas lights around you will remind you of
intentions cast out fear and give direction to believers. the Light mentioned in the Bible and move
They shall rule with God in his coming king- you to get to know him better, encourage
As one muses and puzzles over dom and be with him forever. you to be the kind of light God wants you to
life’s questions John 1:4-5 “Eternal life is in him, and be, and inspire you to bring light to more
One wonders why explanations this life gives light to all mankind. His life is people. God be with you.
seem to elude the light that shines through the darkness—
Even those who seek them with and the darkness can never extinguish it.”
John 8:12 “I am the light of the world.”
their utmost
John 12:46 “I have come as a Light to
shine in this dark world, so that all who put
their trust in me will no longer wander in the
darkness.”
1 John 1:5 “God is Light and in him there
is no darkness at all.”
Micah 7:8 “When I sit in darkness, the
Lord himself will be my Light.”
Psalms 18:28 “The Lord my God has
made my darkness turn to light.”
Psalms 27:1 “The Lord is my light and
my salvation; he protects me from danger—
whom shall I fear?”
12 The POWER News December 2003
Peace and prosperity.
I wish for ERC to be able to protect consumer – Comm. Carlos Alindada
interest and encourage growth of energy industry
players through progressive policies. I also wish
that the Comission be recognized as a totally inde-
pendent agency and achieve fiscal autonomy. I hope our people can really unite so that
Chairman Manuel R. Sanchez we can move forward for the sake of future gen-
erations to come so that they will have better
future. – Comm. Jesus Alcordo
To be one of the most re-
spected agencies in govern-
ment. – Comm. Oliver Butalid
I wish for a harmonious relation-
ship within the ERC organization in
particular and within the electric in-
I wish that all of us will fol- dustry in general. – Executive Dir.
low the teaching that we should Fructuoso Lagunzad, Jr.
love our neighbors as we love
ourselves. With this, there will
be peace in our midst. – Comm.
Leticia Ibay
I wish that a few years
from now, ERC can proudly
declare “Mission Accom-
I wish that all of us will realize that life plished!” - Dir. Francis
is so good and we should spend the rest of Saturnino Juan
it by making it better. – Dir. Maria Teresa
Castañeda
To be able to finish
the evaluation of all un-
bundling applications
filed with ERC. – Dir. An-
thony Aguilar (ROS)
For ERC to be an in-
stitution that we can all I wish for a higher budget
be proud of… Also good or additional funds to be able
health, lots of blessings, to service all our payables. –
and more positive out- Dir. Corazon Guevarra (FAS)
look in life to all Market
Operations Service
(MOS) staff. – Dir. Edgar May the Filipino
Samonte (MOS) people unite towards a
common goal. In this
way the Philippines will
May the existence of the Energy Regulatory
prosper, and we will ex-
Commission’s Consumer Affairs Service (CAS) be
perience peace & har-
known nationwide for the purpose of promoting the
mony. – OIC Sharon O.
consumers’ interests. – Dir. Marina Bugayong (CAS)
Montañer (PIS)
December 2003 The POWER News 13
ERC ACCOMPLISHMENTS
UNDER THE EPIRA
By Ricci Grace D. Mejorada
T
he Electric Power Industry • Design of a new monopolization and
Reform Act of 2001 (EPIRA) organizational structure and Shareholding Dispersal;
provides a framework for the plantilla positions; • Formulation of the Uniform
restructuring of the Philippine electric • Signing of the Stipulation Filing Requirements (UFR)
power industry with a vision to Agreement by the for the purpose of
transform the electricity industry stakeholders in the Unbundling of Rates;
from a monopoly to a competitive implementation of the • Promulgation and
electricity market and from a tariff- Demand-Side Management enforcement of the
focused regulation to competition (DSM) in the Philippines; Guidelines to Govern the
regulation. Pursuant to Section 38 of • Revision/amendment to the Imposition of Administrative
the Act, the Energy Regulatory 1996 DSM Regulatory Sanction in the Form of Fines
Commission (ERC) was created as Framework; and Penalties;
an independent, quasi-judicial • P r o m u l g a t i o n , • Promulgation and
regulatory body implementation of and enforcement of Rules of
amendment to the Procedure Governing
The implementation of the EPIRA is Implementing Rules and Complaints Filed with the
multifaceted because envisioned Regulations for the De- Consumer Affairs Service of
reforms are comprehensive. Among
the critical tasks that ERC must
undertake are “to promote
competition, encourage market
development, ensure customer
choice and penalize abuse of market
power in a restructured electricity
industry.”
Two years after the passage of
EPIRA, the Commission has
achieved significant progress in its
commitment to implement the
provisions of the Act. Below are the
highlights of accomplishments of the
Commission under the EPIRA:
• Implementation the
Mandated Rate Reduction
(MRR) of P 0.30/kWh
The Energy Regulatory Commission (ERC) promulgates on May 29, 2003, the Performance Based
pursuant to Section 72 of the Rate (PBR) Making Methodology of the Transmission Sector. ERC Chairman Manuel R. Sanchez
Act; (seated, center) and Commissioners (seated, from left) Leticia V. Ibay, Oliver B. Butalid, Carlos R.
• Preparation of a new Alindada, and Mary Anne B. Colayco signed this important document at the Malacañang Palace.
The signing was witnessed by Her Excellency President Gloria Macapagal-Arroyo (standing,
schedule of compensation center), (standing, from left) NPC President Rogelio Murga, former President Fidel V. Ramos,
and other emoluments; House Speaker Jose de Venecia, Jr., and DOE Secretary Vincent Perez, Jr.
14 The POWER News December 2003
the Energy Regulatory Philippine Grid and Electricity Demand (SPEED)
Commission; Distribution Code (PGDC); of the NPC;
• Promulgation and • Promulgation of the • Approval of the Transmission
enforcement of the Guidelines for the Incentive Program (TIP);
Guidelines for the Issuance Implementation of the • Rendering of forty-one (41)
of Certificate of Compliance Reduction in Rates of Unbundling decisions
for Generation Companies/ Electric Cooperatives due to including NPC Main and
Facilities; the Condonation of Debts; NPC-SPUG;
• Promulgation and • Promulgation and • Granting of Provisional
enforcement of the Enforcement of the Authority to one hundred
Guidelines to Govern the Guidelines of the National seventeen (117) Electric
Formation of the Grid Grid and Distribution Code; Cooperatives due to Loan
Management Committee • Promulgation of Guidelines Condonation;
and the Distribution of the Sale and Transfer of • Promotion of consumer
Management Committee; the TRANSCO’s interest through Information
• Appointment of the initial set Subtransmission Assets and Campaign on PPA,
of GMC and DMC members; the Franchising of Qualified Unbundling, Universal
• Promulgation and Consortia; Charge and Wholesale
enforcement of the • Promulgation of the Transco Electricity Spot Market
Guidelines for the Wheeling Rates Guidelines; (WESM); Setting up of
Submission, Evaluation and • Promulgation of the consumer desk in the
Approval of the Statement of Performance Rate Based premises of Electric Utilities;
Compliance and (PBR) Making Methodology ERC Hotline Nos. (687-5577
Compliance Plans of the of the Transmission Sector; and 687-5544); launching of
Distributors and Grid Owner • Approval of the Special the ERC Website
and System Operator to the Program to Enhance (www.erc.gov.ph); and
launching of the
TEXT-ERC Project;
• Approval of thirty
(30) Certificate of
Compliance (COC)
Applications; and
• Release of the
Compendium on
Energy Regulation
Laws and Other
Issuances
AWARDING OF COC – Some of the participants during the awarding of Certificate of Compliance (COC) held on November 5, 2003 at the ERC head
office in Pasig City. From left are: James S. Juganas, emcee; Eriberto S. Garcia, Engineering Manager, PNOC-Exploration Corporation; Eduardo L.
Sebastian Gonzales, Plant Engineering Section Manager, Zilog Electronics Philippines, Inc.; Ma. Elaine B. Galapon, emcee; Atty. Norberto Manjares,
Consultant, Tarlac Power Corporation; Atty. Mary Ann C. Diccion, Licensing & Market Monitoring Division Chief, ERC; Edgar F. Samonte, Market
Operations Service Director, ERC; Congresswoman Ma. Amelita C. Villarosa, President, Island Power Corporation; Atty. Manuel R. Sanchez,
Chairman, ERC; Atty. Leticia V. Ibay, Commissioner, ERC; Jesus N. Alcordo, Commissioner, ERC, Luis Miguel O. Aboitiz, Vice President, Hydro
Electric Development Corporation; Carlos R. Alindada, Commissioner, ERC; Jose Veneracio P. Batiquin, Chief Finance Officer, Northern Mini Hydro
Corporation; and Peter D. Garrucho, Jr., CEO & Vice Chairman, First Gas Power Corporation.
December 2003 The POWER News 15
Commissioner Alcordo completes the
Roster of Commissioners
C
ommissioner Jesus N. Alcordo was
appointed by her Excellency, Presi-
dent Gloria Macapagal Arroyo
(PGMA) as Energy Regulatory Commission
(ERC) Commissioner on September 09, 2003.
Commissioner Alcordo is an engineer by
profession and a very successful business-
man and executive specializing in the en-
ergy field. He was President of the National
Power Corporation (NPC) before he joined
the ERC. Comm. Alcordo replaced Commis-
sioner Mary Ann B. Colayco following the
latter’s decision to concentrate on her
family’s business.
ERC Chairman Manuel R. Sanchez
lauds Comm. Alcordo’s acceptance of
PGMA’s appointment. “It is an honor work-
ing with a brilliant man. ERC will greatly
benefit from Alcordo’s 42 years of sterling
domestic and international experience”, the
Chairman said.
Comm. Alcordo finished his Bachelor’s
degree in Chemical Engineering at the Uni-
versity of San Carlos in 1961 and completed
an intensive Executive Program in Business
Administration at the Columbia University
in New York in 1975.
Comm. Alcordo is the oversight Com-
missioner of the Planning and Information
Service.
Topmost photo shows Commissioner Jesus N. Alcordo as
he took his oath of office before Chairman Manuel R.
Sanchez with Commissioners Leticia V. Ibay and Carlos R.
Alindada as witnesses. Photo above was taken during
Commissioner Alcordo’s welcome speech as ERC
Commissioner. Left photo shows Former Commissioner
Mary Anne B. Colayco being presented with a Plaque of
Recognition and a bouquet of flowers as she bid ERC
farewell.
16 The POWER News December 2003
PHILRECA A League of their Own
DECLARES
S
ometime in September 2003, Director
SUPPORT FOR Edgar “Bong” Samonte encouraged
his fellow ERC employees to form bas-
ketball teams and hold a tournament in or-
ERC POLICIES der to further strengthen esprit de corps and
camaraderie among the Services. As a re-
By Charina S. Cabrido sult, four (4) teams were created: 1) ROS
Team; 2) MOS, PIS and Admin Team (Brgy.
ERC); 3) Legal Team; and 4) Guards & Util-
C
hairman Manuel R. Sanchez attended ity Team. The teams usually play once a
the NAGMEC and Philippine Elec week. So far, the MOS/PIS/Admin Contin-
tric Cooperative Association gent remains undefeated.
(PHILRECA) Board Meeting in Cagayan de - Ronces Ann Reyes
Oro City last October 29, 2003. He was in-
vited by the said organizations to discuss
the new policies of the Commission as well
as the predicament of the electric coopera-
tives in Region 10.
“The Commission has recently ap-
proved certain policies which benefit the Let’s Get Physical
electric cooperatives in general” Chairman
A
Sanchez reported. These policies pertain to ll work and no play make ERC a dull organization. Thankfully, ERC can depend on
the expanded use of the reinvestment fun Instructor Jessie Eulalio. A patient and informative instructor, Jessie teaches Taebo
for equity infusion into Rural Electrification and aerobic dancing to employees who are willing and able to attend his weekly
Financing Corporation (REFC) and the 100% schedule. An average of ten (10) students join and the session runs an hour. Participants
retention of income from other revenue items hope that the program will continue in 2004. - Ronces Ann Reyes
other than the prompt payment discount and
asset-based operating income. He also in-
formed the electric coops of an intended re-
view of the existing system loss policy.
Representatives of the electric coops
welcomed the new measures and expressed
their support of the efforts of the Commis-
sion to reform the industry. The meeting-
cum-dialogue between the ERC Head and
the Region 10 electric cooperatives turned
out to be a success. Thus, Chairman
Sanchez hopes to replicate this experience
in other regions of the country.
To date, PHILRECA and NAGMEC have
total membership of at least twelve electric
cooperatives in Region 10. Among them are
Agusan de Norte Electric Cooperative, Inc.
(ANECO), Bukidnon I Electric Cooperative,
Inc. (FIBECO) and Camiguin Electric Coop-
erative, Inc. (CAMELCO).
December 2003 The POWER News 17
LIST OF NEW ERC Dennis R.
Siaton
Zierla Marie S.
Ranay
June 2
EMPLOYEES October 3
W e are happy to welcome the new employees listed below who
were hired this year. Welcome to the ERC family!
Mary Ann C.
Diccion
June 2
Allan V.
Alfafara
October 8
Teresita A. Dinah Lixeta
Cabriule D. Bal Marlon C. Alfredo A.
January 2 April 8 Eusebio Mendoza
June 2 October 13
Apolinar Clodraph P. Antonino E.
Bajaro, Jr. Patano Gatdula Ariel B. Alcover
January 3 April 9 June 4 October 13
Doris R.
Rhett Roswell Gatchalian Arlene B. Rhoderick M.
Mislang April 12 Evangelio Fernandez
February 3 June 9 October 16
Alvin Jones Anthony Alden Myrnanette G.
Ortega S. Aguilar Ricci Grace D. Macaraeg
February 18 April 28 Mejorada October 20
July 1
Oliver Cruz Chereedith C. Debora Janet C.
February 18 David Anastacia T. Calanayan
May 13 Layugan November 3
July 14
Mary Grace Carmela C. Dennis M. Jose C. Reyes
Enriquez Paran Lalata November 10
February 19 May 15 July 16
Christine Francis
Abigail N. Arji P. Obmerga Jesus N. Saturnino C.
Rubio March May 19 Alcordo Juan
17 September 25 November 17
Mariano B. Abul Khayr
Mariano B. Amalon Alonto Maria Trisha R. Mesia
Ibay II Concepcion C. November 17
April 1Ib May 19 Sicat
September 26
Francisco Roshella O.
Jose S. Villa, Feberes Federico D. Crizaldo P.
Jr. May 27 Bustamante, Jr. Carandang
April 1ay October 1 December 5
18 The POWER News December 2003
Peter Tyrone II is the first child of Venz Aldrin is the first child of ERO
SERO Caroline R. Chan and her hus- II Nelson M. Guinto and his wife Roselle.
band Peter Tyrone. He was born on Janu- He was born on September 12, 2003,
ary 1, 2003, weighed 6.6 lbs. and mea- weighed 8.7 lbs. and measured 52 cm. at
sured 50 cm. at birth. birth.
Gregory Kristanz is the fourth child
of ERA Glenn DJ De Jesus and his wife Gabrielle is the first child of Supvg.
Ma. Victoria. He was born on January ERO Patrick G. Fontanilla and his wife
2, 2003. Tess. She was born on September 24, 2003
and weighed 5.5 lbs. at birth.
Kurt Lester is the third child of
ERO II Reggie O. Obregon of the André Stephen is the second child
Mindanao Field Office and his wife of Supvg. ERO Leila Cirio and her
Roxanne. He was born on February 26, husband Rene Antonio.He was born on
2003 October 11, 2003.
Jeremie Raiza is the second child
of SERO Jean Astrid C. Francisco and Giovanni Jonathan “Gio” Ramirez
her husband Jonathan. She was born on Cruz is the second child of Supvg.
April 21, 2003, weighed 7.02 lbs. and mea- ERO Oliver O. Cruz of the MOS and her
sured 51 cm. at birth. wife Criselda R. Cruz. He was born on
October 31, 2003 , weighed 6.3 lbs and
measured 55 cm at birth.
Nicolaus Siemon is the second
child of ERO II Gemma J. Chavez and
her husband Nicanor. He was born on
October 18, 2003, weighed 7 lbs. and mea-
sured 50 cm. at birth.
December 2003 The POWER News 19
UPDATES ON THE ERC DAY CARE CENTER
By Abul Khayr Amalon M. Alonto II
I
t has been 4 months since the inauguration of the Energy Regu- fully, the daycare service will gain more support from our employees
latory Commission’s Day Care Center. Our Day Care Worker, in the future and cater to more children.
Ms. Maria Theresa B. Sucgang, has already undergone training The ERC Day Care Center has provided its services to children
at the Pasig City Day Care Service Convention Center, under the ages 1 to 6. As such, it has been noted that it is more of a drop-in
guidance of the Day Care Accreditor, Ms. Levi L. Esguerra of the center, because a daycare center provides services to children ages
Pasig City Day Care office. As a result of that training, Ms. Sucgang 3-5. According to Ms. Sucgang, for children ages 0-3, a child-mind-
has been given an OJT Certificate for Accreditation as a Day Care ing center should be utilized. The Administrative Division has taken
Worker. the initiative to seek accreditation for the ERC Day Care Center from
As of December 9, 2003, 18 employees have left their children the Department of Social Welfare and Development. At present, the
under the care of Ms. Sucgang with a total of 26 children having accreditation of the ERC daycare is still in process.
catered the services of the ERC Day Care Center. It has been benefi- The ERC Day Care service is an ongoing program. When the
cial to the employees concerned because of the freedom from worry ERC moves to its own building, the ERC will be at a better position
that our daycare service has provided them. Although the daycare to provide both a daycare service as well as a child-minding service.
service is presently limited, it can be said that it is a success. Hope-
20 The POWER News December 2003
