Thursday, February 7, 2019

Decide on questionable power deals now



Published January 31, 2019, 2:08 PM By Ellson Quismorio

The Energy Regulatory Commission (ERC) should go full blast in scrutinizing the seven controversial power supply agreements (PSA) that have been pending before the body for nearly three years now.
Akbayan Party-list Rep. Tom Villarin and Bayan Muna Party-list Rep. Carlos Zarate issued the call in reaction to reports that the ERC leadership is on its way to being complete again following the resignation and retirement of three of its five top officials last year.
 “The newly constituted ERC with full membership should go full throttle on investigating all deals that is not to the best interest of consumers, including the Meralco-linked power supply deals,” Villarin said.
“As a regulatory body, it (ERC) should be independent and critical of all applicants for energy power generation supply and distribution [that] would tend to create monopolies and control of the market,” added Villarin.
Zarate, for his part, said, “I think what is left now is to order these seven power supply agreements or Meralco to submit these to a competitive selection process (CSP).” A CSP basically refers to a bidding process, which the PSA applications did not undergo.
Zarate, who initiated a House probe on the seven Meralco-linked power deals in 2017, claimed consumers would shoulder P930 billion in additional power rate expenses within the 20-to-21-year duration of the PSAs should the ERC approve them.
Since July 2018, three commissioners – Alfredo Non, Gloria Victoria Yap-Taruc, and Geronimo Sta. Ana left the ERC. Non and Yap-Taruc retired, while Sta. Ana resigned for health reasons.
In fact, among the reasons cited by ERC Chairperson Agnes Devanadera for the body’s delay in resolving the seven questioned PSAs back then was the lack of quorum among commissioners.
The Palace has since appointed Commissioners Catherine Maceda and lawyer Alexis Lumabatan to replace Non and Yap-Taruc, respectively.
Last week, a Manila Bulletin report bared that certified public accountant (CPA)-lawyer Paul Christian Cervantes is a lock for the post vacated by Sta. Ana, and that his appointment papers were due for release soon.
Add the three to sitting Commissioner Josefina Patricia Asirit, Chairperson Devanadera and the ERC would have enough warm bodies to properly dispense with pending cases.
In this regard, Zarate advised the commissioners to look up the findings of the House investigation on the supposed “sweetheart” power deals, which was concluded last year.
“Naipakita sa hearings ng House, napatunayan dito na yung seven power supply agreements na yun were actually filed beyond even the extended deadline. Pwede itong gamitin as basis ng commissioners, pag-aralan nila ang mga nangyari nung hearing ditto (During the House hearings, it was shown and proven that the seven power supply agreements were actually filed beyond even the extended deadline. The commissioners can use this, they can study what happened during the hearings here),” he said, adding that they are public document.
“Napakita rin dito na…talagang lugi yung mamamayan (It was also shown that the people ,” the militant solon added, referring to what he described as the “onerous” nature of the power contracts.
“Malinaw na yung basis na sa tingin ko ay wag nilang payagan, wag nilang i-approve yung seven PSAs na yun at bagkus ay isumbmit nila sa CSP (I think there’s clear basis for the PSAs to be rejected, and instead have them subjected to a CSP),” Zarate further said.
The multi-trillion peso PSAs, which involve deals on the construction of coal-fired power plants, were filed back in 2016 by Meralco-affiliated generation companies.
These are Redondo Peninsula Energy Incorporated, which is applying 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); and Global Luzon Energy Development Corporation (600 MW).
Devanadera, a former solicitor-general and secretary of Justice, only became ERC commissioner in November, 2017.

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