Rationale for Designating a Regulatory Compliance Officer (RCO)
- Non-compliance with the ERC's issuances has been observed to result from regulated entities failing to monitor relevant ERC issuances for timely compliance.
- The ERC believes this failure can be addressed by requiring regulated entities to designate an officer responsible for ensuring compliance with ERC issuances.
Scope and Applicability
- The requirement applies to all regulated entities within the electricity industry, including distribution utilities (DUs), generation companies, retail electricity suppliers, and other relevant entities.
Role and Qualifications of the Regulatory Compliance Officer (RCO)
- The RCO's primary function is to ensure the regulated entity complies with all pertinent ERC issuances.
- The RCO must be a senior level officer within the entity.
- The RCO cannot be the General Manager or the Chief Executive/Operating Officer of the entity.
Procedural Requirements
- Regulated entities must designate an RCO and submit the name of the designated officer to the ERC.
- The deadline for submission of the RCO’s name is no later than February 28, 2006, or within ten (10) days after designation, whichever comes first.
Communication and Distribution
- Copies of the resolution are to be furnished to the Department of Energy (DOE), National Electrification Administration (NEA), Philippine Electric Plant Owners Association (PEPOA), National Power Corporation (NPC), National Transmission Corporation (TRANSCO), Power Sector Assets and Liabilities Management (PSALM) Corporation, distribution utilities, generation companies, and retail electricity suppliers.
Effectivity
- The resolution took effect immediately upon adoption on February 6, 2006.
Legal Implications
- The designation of an RCO institutionalizes compliance monitoring within regulated entities to reduce breaches of ERC issuances.
- Ensuring compliance through an RCO supports the ERC’s regulatory mandate and the enforcement mechanisms established under Section 43 (l) of EPIRA.