I will not resign, says ERC chief Ducut

MANILA, Philippines – She’s not quitting. 

Under fire for allegations she hastily approved a power rate increase, Energy Regulatory Commission (ERC) Chairperson and CEO Zenaida Cruz-Ducut on Friday night, January 24, dismissed calls for her to resign.

In a statement, she said that in her 5 years as ERC boss, the agency “has risen up through every challenge in the transition to an open and competitive electricity sector and delivered on its mandate.”

The former Pampanga lawmaker and close ally of former President Gloria Macapagal-Arroyo stressed: “I will not abandon but will lead my people to what is proper and appropriate.” 

Akbayan lawmakers Walden Bello and Barry Gutierrez on Thursday, January 23, filed a complaint against Ducut before the Office of the President, urging President Benigno Aquino III to remove her from office for “gross neglect of duty and incompetence in protecting the interest of the power consumers.”

Under Ducut, the ERC approved a steep power rate hike – the highest in history – which power company Manila Electric Co (Meralco) had asked for. The Supreme Court, however, stopped the implementation of the ERC order following petitions against it. (READ: Meralco inflated charges, SC told)

“Ducut is guilty of gross neglect of duty and incompetence by tacitly approving without the barest hint of due process Meralco’s unprecedented power rate hike,” Bello said.

“Her failure is stupefying considering that the increase in Meralco’s generation charge for the month of November 2013 was the largest under the regulatory regime implemented by the EPIRA and administered by the ERC. It was incumbent upon Ducut being the head of the ERC to have conducted an immediate investigation into the matter.”

Ducut said she has yet to receive a copy of the complaint.

Ducut clarified that what the ERC approved on Dec 9, 2013 was the clearance sought by Meralco to stagger the collection of its generation cost for the November 2013 supply month and not the P4.15/kilowatt-hour rate increase of Meralco.

The Meralco rate was calculated in accordance with the Automatic Rate Adjustment (AGRA) Rules promulgated by the ERC as a collegial body in 2004, even before she became the ERC Chairperson, she said.

“There was no irregularity in approving the clearance sought for the staggered generation cost-recovery of Meralco because the decision was made only with the end view of cushioning the impact on the electricity consumers,” her statement read.

On Friday, Presidential Communications Operations Office Secretary Herminio Coloma Jr said the concerns regarding Ducut have reached the President.

“Suspension can be imposed if warranted only after respondent shall have submitted comment to the complaint, and due process shall be observed,” he said.

Coloma said while the Palace could not ask her to leave her position, he acknowledged that Ducut “has the option of voluntary resignation.” – Rappler.com