Republic of the Philippines


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ERC Directs PECO to Explain Operational Lapses

The Energy Regulatory Commission (ERC) directed the Panay Electric Company, Inc. (PECO) to submit its explanation for the apparent operational lapses found by the ERC Inspection Team.  In an Order dated 26 November 2019,   PECO’s directors and officers were required to explain why no administrative penalty should be imposed and/or criminal action instituted against them for violating the pertinent provisions of the following: (1) Philippine Distribution Code (PDC) 2017 Edition; (2) Amended Distribution Services and Open Access Rules (DSOAR); (3) Amended Elevated Metering Center (EMC) Rules; and (4) ERC Resolution No. 12, Series of 2009 (Guidelines for the Accreditation of Satellite Laboratories of Meter Shops).
"Based on the findings of the ERC technical team that conducted the ocular inspection on the electric distribution system of PECO, the latter committed lapses in the operations and maintenance of its distribution system thereby posing danger and risks to the lives and properties of its consumers,” said ERC Chairperson and CEO Agnes VST Devanadera.  

The findings of the ERC Inspection Team showed that:  (1) PECO’s protective devises were not properly rated and designed; (2) Some poles were found leaning and in unsafe positions; and (3) Some meters were found to be clustered and installed in an Elevated Metering Center (EMC) without securing prior ERC approval.  It was further uncovered that the Certificate of Authority (CA) for PECO’s meter shop expired on 18 November 2019, and PECO has not filed the application for the renewal of the same.

"PECO must submit its explanation within fifteen (15) days from receipt of the Commission’s Order pursuant to the relevant provisions of the Electric Power Industry Reform Act (EPIRA).  We need to accord PECO the opportunity to explain its side before we evaluate the extent of their liability for the operational lapses that were discovered”, ERC Chair Devanadera averred.


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