LAWMAKERS have asked the Energy Regulatory Commission to compel its technical working group to expedite the review and evaluation of the deals entered into by the Manila Electric Co. so that all questions and suspicions about the contracts would now be addressed.
The lawmakers sought the expeditious review by the ERC TWG during the joint hearing earlier conducted by the House of Representatives’ committees on energy, and on good government and public accountability.
This was after the panel acted on House Resolution 566 filed by Bayan Muna Party-List Rep. Carlos Isagani Zarate seeking an inquiry into the alleged midnight deals of the Meralco-affiliated generation companies and the ERC which may be disadvantageous to the public and cause power rate hikes.
During the hearing, Rep. Gil Acosta of Palawan questioned the slow review of the ERC TWG on the matter.
“The ERC commissioners are empowered by law to supervise its TWG so it can fast-track the review of the Meralco deals,” Acosta said.
Acosta said the slow review of the TWG was the primary cause of delay in the construction of the Atimonan 1 Power Plant.
“The ERC is unable to grant its approval because the board is still waiting for the work of its TWG,” said Acosta.
Acosta advised the ERC to strictly follow the timeline it provided and come up with a resolution no longer than five to six months.
The committees then ordered the participation of the ERC chairman and chief executive officer in their next hearing, warning that they would subpoena the officer in case of non-compliance.
Similarly, the committee requested for supporting documents to be submitted during the next hearing such as the minutes and copies of the Meralco power supply agreements.
In pushing for the probe, Zarate said the key objective of the inquiry was primarily to look after the welfare of the consumers and to determine whether Meralco’s PSAs were in violation of the company’s franchise provisions and whether the ERC’s decision to extend the enforcement of the mandated competitive selection process was meant to accommodate Meralco.
Zarate recommended the careful examination of the Meralco and ERC deals to ensure these would genuinely benefit consumers amid allegations of ‘anomalies’ in the agreements.
He cited as an example the construction of the Atimonan 1 Power Plant in Quezon province which costs about P112-billion annually for Meralco consumers, or about P2.2 trillion over the 20 year and six months contract.
Zarate also said the agreements between Meralco and the seven power suppliers did not undergo proper bidding.
Initially, the ERC Board announced the deadline for submission of all the documents required in the application for CSP for distribution utilities entering into PSA was November 2015.
The ERC said the deadline was then extended to April 2016 to accommodate certain inquiries.
But the committee said the decision raised suspicions as the actions taken by ERC were seemingly done to accommodate Meralco.
But Rep. Eugene De Vera, ABS party-list, said Meralco entering into a 20-year contract was highly questionable because its franchise was only valid for the next 11 years.
House minority leader and Quezon Rep. Danilo Suarez urged the ERC to protect the credibility of its institution and prove in Congress that the deal wouldl not favor Meralco but the consumers.