ERC assailed for disregarding House probe
Bayan Muna Party-List Rep. Carlos Zarate on Tuesday blasted the Energy Regulatory Commission (ERC) for disregarding the ongoing joint probe of the House of Representatives on the seven controversial power supply agreements (PSAs) that the Manila Electric Company (Meralco) is applying for.
The ERC drew the ire of Zarate after House members learned from ERC Commissioner Josefina Patricia Asirit that at least one of these so-called “sweetheart deals” have been given a “provisional authority” by the agency.
“ERC apparently disregarded due consideration of the ongoing congressional probe and in effect gave Meralco affiliated gen cos( generation companies) unwarranted treatment,” Zarate said on the sidelines of the inquiry conducted by Committees on Good Government and Public Accountability and Energy.
Surigao del Sur 2nd District Rep. Johnny Pimentel (chairman, Good Government panel) and Marinduque lone district Rep. Lord Allan Jay Velasco (chairman, Energy panel) jointly presided over the hearing, which is the third under House Resolution No. 566 filed by Zarate.
During the hearing, Zarate cited a report, which – to his shock – revealed that one of the seven PSAs has already gained the nod of the ERC. This prompted the Makabayan solon to ask for a clarification on the status of the agreements. Pimentel backed him up on the query.
“I also got information, I don't know if this is true... has one of the PSA been approved by ERC? We want to know the status,” the House leader said.
“One, with PEDC, that is the Panay Energy Development Corporation, has a provisional authority already given,” Asirit confirmed.
“Would it mean that in principle, it is already approved?” Pimentel asked.
“It gives the utility the ability to draw power from the existing plant, especially... if I'm not mistaken, this one was...to augment the supply status that the demand of Meralco needed at a particular period,” explained Asirit, adding that there's an “approval subject to final determination.”
Asirit noted that three of the PSAs have yet to undergo hearings due to the lack of environmental compliance certificate (ECC).
Zarate, in filing HR No.566, had earlier claimed that consumers could lose up to 112.44 billion annually if the seven PSAs are given the green light. He said the application for these deals should not have been accommodated in the first place since they weren't filed properly.
Meralco’s PSAs at ERC include deals on the construction of coal-fired power plants with the following entities: Redondo Peninsula Energy Incorporated (for a 225-megawatt [MW] plant); Atimonan One Energy Incorporated (1,200 MW); St. Raphael power Generation Corporation (400 MW); Central Luzon Premiere Power Corporation (528 MW); Mariveles Power Generation Corporation (528 MW); Panay Energy Development Corporation (70 MW); Global Luzon Energy Development Corporation (600 MW).