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Friday, March 29, 2024

ERC rejects opposition to Meralco supply deals

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The Energy Regulatory Commission has dismissed the opposition filed by certain personalities against the seven controversial power supply agreements of Manila Electric Co.

The regulator in separate decisions dismissed the petitions for intervention of Romeo Junia, Fe Bait and Uriel Borja against the supply agreements of Meralco with Atimonan One Energy Inc., St. Rafael Power Generation Corp., Panay Energy Development Corp. and Redondo Peninsula Energy Inc.

The ERC said it denied the plea of the personalities representing cause-oriented groups to be intervenors in the case.

It also rejected the petition to dismiss the supply agreements filed by Junia for having no legal personality.

The ERC said the oppositors forwarded their petitions seven to nine months after the initial hearing, citing that interested parties must submit at least five days prior to the initial hearing.

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“The commission finds no merit in the explanation advanced by the petitioners for the belated filing of the petitions for intervention,” the regulator said.

The ERC, however, said the commission treated the petitions for intervention as oppositions.

“If you are given the status of intervenor you can present witnesses as well as cross examine the other parties’ witness. If you are treated as an oppositor, you may submit your position paper anytime during the proceedings for the commission’s consideration,” ERC spokesman Floresinda Digal said.

The ERC said in July it might come out with a decision on Meralco’s pending power supply agreements with seven generators within three months.

Meralco signed 3,551 megawatts of power supply agreements with seven power generators, capturing 81 percent of the 4,384-MW combined capacity of their power projects in April 2016.

The agreements were signed before the the implementation of the competitive selection process, or CSP, which required the distributors to hold bidding for their supply requirements, a move that drew flak from various groups.

The ERC earlier asked Meralco to submit its comments to the concerns raised by the various groups.

The Center for Energy, Ecology, and Development, along with Sanlakas, Philippine Movement for Climate Justice, Freedom from Debt Coalition, Koalisying Pabahay ng Pilipinas and other member organizations of the Power for People (P4P) organization filed separate petitions questioning the applications.

They alleged that the agreements would have an impact on the environment and Filipinos might end up paying more for electricity.

Meralco denied the claims of “midnight contracts” with the seven power plants that would allegedly result in “costlier and dirtier energy from coal.”

Meralco said the allegations were baseless and totally unsubstantiated as the power supply agreements were legally filed in accordance with the rules and regulations of the ERC.

It said the objective of the power supply agreements aimed to ensure adequate and reliable power supply at the least cost to Meralco’s more than six million customers.

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