By
Lenie Lectura - May 1, 2018
A GOVERNMENT
proposal to subject to “Swiss challenge” the pending power-supply agreements
(PSAs) between the Manila Electric Co. (Meralco) and power producers is unfair,
a Meralco official said.
“I think it would be
unfair because some agreements were already signed. For example, we have
concluded with Meralco. We can really show it’s been benchmarked against
other projects. We hope it will no longer apply on those projects, those
that have already gone through the process that was prescribed then,”
said Rogelio Singson, president of Meralco PowerGen Corp. (MGen), a
subsidiary of Meralco.
Meralco’s PSAs
applications pending before the Energy Regulatory Commission (ERC) cover a
total of 3,551 megawatts with various power-generation companies (gencos).
These are with Redondo
Peninsula Energy Inc. (RP Energy), St. Raphael Power Generation Corp. ,
Atimonan One Energy Inc., Central Luzon Premiere Power Corp., Mariveles Power
Generation Corp. of the San Miguel Group and Global Luzon Energy Development
Corp. of Global Business Power Corp.
Meralco and these
gencos signed the bilateral contracts before April 30, 2016, the deadline set
by the ERC. After April 30, 2016, all PSAs should undergo competitive selection
process (CSP), which requires distribution utilities and gencos to subject
their PSAs to price challenges.
These PSAs are still
pending for approval before the ERC, amid allegations the
regulators favored Meralco by excluding the power distributor from
subjecting their power deals to CSP. Consumer groups and other sectors alleged
the ERC deliberately extended the CSP deadline from November 2015 to April 30,
2016, in favor of Meralco.
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