Changes eyed in power pilferage law IRR

Due to several Supreme Court rulings
By MYRNA M. VELASCO
December 26, 2009, 1:56pm

To incorporate policy ramifications from the restructuring of the power industry, the Energy Regulatory Commission (ERC) is currently working on amendments to the implementing rules and regulations (IRR) of the Electricity Pilferage Act.

Instituted via Republic Act 7832, the law punishing electricity theft had its implementing rules and regulations (IRR) promulgated in 1995. From then on, several rulings of the Supreme Court necessitated modifications of some rules, and such task falls primarily as a responsibility of the regulator.

“The ERC deems it necessary to amend some provisions of the IRR in order to incorporate the policy changes,” the regulatory body noted.

Jurisprudence, it was noted, laid down varying interpretations of some policies that the ERC has to clarify via the amendments being worked on in the law’s implementing rules.

Thus, ERC chairperson Zenaida G. Cruz-Ducut is calling on all stakeholders to “actively participate in the expository hearings and public consultation to be conducted if they are really serious in protecting their basic rights as consumers.”

The range of policy amendments proposed include novel concerns that shall clarify provisions as to: Who can be charged of a violation under RA 7832; as well as the procedures and allowed times of apprehension.

The other major amendments would be on: the determination of the proper party liable to pay with the manner of computation and payment of differential bills; and on disconnection procedures and imposition of surcharges.

The scheduled expository hearings will be January 6 next year in Cebu City for distribution utilities in the Visayas and Mindanao areas; while January 13 for those in Luzon. The culmination hearings will be undertaken in Manila on February 3 next year.

The push for amendments in the Pilferage Act’s rules is seen necessary given recent mandates for DUs to pare down their system loss to comply with the reduced caps set at 8.5 percent for private DUs and 13 percent for electric cooperatives.

Many of the distribution utilities indicated that the biggest challenge in meeting the revised system loss caps would be on containing technical losses.