ERC orders power firms to have regulatory compliance officers
Thursday, February 23, 2006
By MYRNA M. VELASCOThe Energy Regulatory Commission (ERC) is requiring power distribution companies to designate their respective regulatory compliance officers (RCO) so they could better keep track of the developments and concerns in the power industry’s regulatory environment.
On the strength of Resolution No. 4, the regulatory body has given the power utilities until February 28 to nominate their respective RCOs, as a step of making sure that "the DUs can vigilantly monitor pertinent issuances of the ERC for their timely compliance."
It has been prescribed that the RCO-designate must be an officer occupying a senior level position other than the General Manager (GM) or the Chief Executive Officer (CEO).
After the appointment has been made by a particular company, it is required that the name of the RCO shall be forwarded to the ERC for proper listing.
In setting out such policy, ERC chairman Rodolfo B. Albano, Jr. emphasized that "the ERC would like to improve the compliance of DUs to regulatory issuances through the RCO" in the name of serving best the interest of the industry stakeholders, and without delay.
With this, Albano noted that "the ERC expects that DUs will now be more proactive in dealing with regulatory policies and directives."
As this developed, the ERC promulgated the rules, terms and conditions that shall govern the provision of service of regulated electric distribution utilities, including their foray into open access, which shall take mandate from the issued Distribution Services and Open Access Rules (DSOAR).
The Guidelines prescribed that all DUs, including those operating in the economic zones, shall "be ready to provide a variety of services to the captive and contestable markets in a reliable, efficient and economical manner."
The open access rules for DUs likewise set templates for related undertakings or agreements between the utilities and their customers.
From now on, the ERC expressed that the DSOAR shall serve as the "bible for the DUs" as this was designed to cover the various service combinations in the new business environment espoused by the Electric Power Industry Reform Act.
This includes terms and conditions related to the provision of services to the captive and contestable markets, on their role as Supplier of Last Resort (SoLR) and for the Distribution Connection Assets and Services (DCAS).
posted by philpower @ 11:00 AM,
