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Friday, March 29, 2024

Solons question contracts’ approval

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LAWMAKERS on Thursday questioned Energy Regulatory Commission chairperson Jose Vicente Salazar’s action in allegedly approving without his board’s approval Extensions of Power Purchase Agreements between power generation company FDC Misamis and seven electric cooperatives in Mindanao. 

Reps. Bernadette Herrera-Dy of Bagong Henerasyon party-list and Gus Tambunting of Parañaque City said the matter should be looked into to find out if there was indeed regularities committed under Salazar’s watch.

“The singular act of Salazar is highly questionable and very irregular,” Herrera-Dy said.

Herrera-Dy said common sense dictated the ERC must act on the specific petitions of power producers as a body and a thorough consultations with all stakeholders must have been conducted prior to any action on the petitions.

In Ilocos Norte, travelling Senator Sherwin Gatchalian asked Malacañang to step in to protect public interest in the wake of the ongoing internal squabble at the Energy Regulatory Commission.

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“Malacañang should already closely look into this and pursue the issue more in-depth,” Gatchalian, chairman of the Senate Committee on Energy, told reporters in Laoag City.

Gatchalian said the internal issues hounding the ERC “is very disheartening” and expressed concern this might spill over and affect the agency’s discharge of their duties.

“Their mission is to protect all of us, to ensure that rates and prices are right for consumers. I am more afraid that the personal bickering will spill over to the discussions in the commission…From what I am reading also, there are a lot of fault finding,” he said.

ERC is now at the center of controversy in the power sector after the four commissioners—Geronimo Sta. Ana, Alfredo Non, Josefina Asirit and Gloria Taruc ­—questioned the appointments of ERC chairman Jose Vicente Salazar while he was on leave.

The issues within the commission stemmed from the death of the late Francisco Villa Jr.,former ERC director last year who committed suicide and alleged some irregularities in the agency.

The circumstances surrounding his death caused a rift between the commissioners against the chairman.

Gatchalian said Malacanang, specifically President Rodrigo Duterte, should use the evidence gathered by the National Bureau of Investigation, which conducted an investigation on Villa’s death to make a decision.

“NBI  has evidences (sic), they reviewed different laws and policies.  They know exactly what were violated in terms of procurement laws. These are the facts that can be used. Most important here is the appointing authority is already moving,” he said.

“The ERC body is really in a very disturbing mess, the commission has to act as one body after series of hearings for specific petitions of power producers,” Herrera Dy said.

Like Herrera-Dy, Tambunting was disturbed by Salazar’s.action.

“At the very least we have to find out what truly happened. Power purchase agreements are contracts that at all times are imbued with public interest, and there is a process specified by law for its approval or extension,” Tambunting said. 

“If there is an allegation of some wrongdoing,  Chairman Salazar must clear the air,” Tambunting added.

Herrera-Dy and Tambunting were referring to the FDC Misamis manifestations filed before the ERC dated last January 24 to extend the power purchase agreements between Bukidnon Second Electric Cooperative, Davao Oriental Electric Cooperative, Misamis Occidental II Electric Cooperative, Lanao del Norte Electric Cooperative, Agusan Del Norte Electric Cooperative, South Cotabato II Electric Cooperative, and Misamis Oriental Electric Cooperative. 

The manifestations read that FDC Misamis and the concerned electric cooperatives had agreed to extend their contracts for another year.

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