As competitive environment in the power industry inches closer, the legal knot in the regulation of providing electricity service in economic zones has yet to be untangled, and a Court ruling is expected to be the only factor that can have it finally resolved.

While a compromise agreement was reached between Manila Electric Company (Meralco) and the other distribution utilities with that of the Philippine Economic Zone Authority (PEZA), the other parties in the case, primarily the Energy Regulatory Commission (ERC) and Philippine Independent Power Producers Association (PIPPA) have not withdrawn their case.

On the part of the DUs though, including Private Electric Power Operators Association (PEPOA), they manifested that there should be clear demarcation as to the regulatory powers that both ERC and PEZA must assume in the ecozones.

ERC executive director Francis Saturnino Juan said “we leave it to the Court to decide. It is better that way rather than leave the issue unresolved.”

The DUs propounded that both PEZA and ERC have to agree on principles of asset recognition and boundaries for rate-setting.

The resolution of power regulation at the ecozones has been among those being monitored by prospective power suppliers so they can get a clearer view of how their investments or service provision be treated on the regulatory sphere.

There have been sort of confusions as to which entity shall regulate electricity providers at the ecozones, since the Electric Power Industry Reform Act (EPIRA) vests regulatory powers over the electric power industry solely to the ERC. PEZA though is also asserting its regulatory powers over the ecozones.

The DUs previously held compromise talks with PEZA, leading to Meralco’s and PEPOA’s withdrawal of their injunction petition before a Pasig regional trial court.

In a correspondence then coming from PEZA Director General Lilia B. de Lima, the ecozone administration body proposed some measures to address the concerns raised by the DUs.