The Board of Investments (BOI) and the Energy Regulatory Commission (ERC) are working together to resolve investment and other issues that continue to hound energy sector proponents, particularly relating to so-called contestable clients.
“It is necessary to execute this memorandum of understanding as it is essential to understand how we perform our functions,” Bobby Fondevilla, BOI – Investment Assistance Center executive director, said of the recently signed agreement.
The agreement seeks to address investor issues and concerns related to energy, power consumption and connectivity, particularly from BOI clients.
Monalisa Dimalanta, ERC chairman, said the regulator plays a significant role in the country’s business climate through the performance of its regulatory and quasi-judicial functions.
“We appreciate this collaboration because we know this is how we can contribute to fostering a positive business climate in the Philippines,” Dimalanta said.
Fondevilla said the agreement also involves information sharing to identify and address bottlenecks and provide solutions for strategic partnerships.
The ERC said close coordination with BOI helps resolve issues affecting contestable customers struggling with financial distress caused by abrupt increases in power rates. Such changes often lead to the disconnection of power supply that kills investments.
Contestable customers are those with monthly consumption of over 500 kilowatt-hours, mostly businesses who choose their own power generation suppliers at a negotiated price.
