spot_img
28.6 C
Philippines
Friday, March 29, 2024

‘ERC execs must resign’

- Advertisement -

Bayan Muna Rep. Carlos Isagani Zarate on Sunday called for the resignation of all officials of the Energy Regulatory Commission, saying they failed to protect the rights of consumers from anomalous deals.

Zarate said the resignation of agency head Jose Vicente Salazar and all of his commissioners would serve well the scandal-wracked ERC.

“As it is, they have failed to safeguard the welfare of electricity consumers and power rate hikes are not being stopped by the ERC. While Congress is now investigating the anomalies in the ERC and bills to replace the onerous Electric Power Industry Reform Act, the ERC should be manned by people with integrity and competence to protect consumers,” Zarate said.

“One of the most controversial among these deals is the midnight deal on seven power supply agreements of Manila Electric Co.-affiliated power generation companies which would largely benefit it. The ERC issued the anomalous extension of the deadline requiring competitive bidding in the PSAs of distribution utilities. The extended deadline as proposed by Commissioner Josefina Magpale-Asirit allowed Meralco to enter into sweetheart PSA deals with its seven sister and affiliated companies,” the lawmaker added.

Zarate said the sweetheart deal resulted in Meralco’s monopoly on power distribution.

- Advertisement -

“Because of such (deals), there has been a power monopoly, and that the consumers are tied to the services of Meralco for the next 20 to 25  without a bidding. The extension effectively rendered the competitive selection process useless and inutile,” he said.

Salazar was earlier blamed for the death of ERC director Francisco Villa in November 2016.

Villa, who took his own life, left handwritten letters where he said he was being pressured to approve anomalous procurement contracts and hiring consultants without proper bidding and procedure.

- Advertisement -

LATEST NEWS

Popular Articles