ERC defers action on Meralco 'midnight deals' | ABS-CBN

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ERC defers action on Meralco 'midnight deals'

ERC defers action on Meralco 'midnight deals'

ABS-CBN News

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MANILA - The Energy Regulatory Commission (ERC) has deferred action on most of the power supply agreements (PSAs) submitted to the commission by Meralco, which are being questioned by consumer groups.

This was revealed by the ERC in a joint hearing of the House Committees on Energy and Good Government on Tuesday.

Congress is looking into the PSAs, which Bayan Muna party-list Rep. Carlos Zarate alleged to be "sweetheart deals" between Meralco and its affiliates, and are supposedly disadvantageous to power consumers.

ERC Commissioner Gloria Yap-Taruc said the commission has yet to approve the PSAs between Meralco and power generation companies Redondo Peninsula Energy Inc, Atimonan One Energy Inc, St. Raphael Power Generation Corp, Central Luzon Premiere Power Corp, Mariveles Power Generation Corp, Global Luzon Energy Development Corp, and Panay Energy Development Corp.

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Yap-Taruc said some of the PSAs either lack environmental compliance certificates, or are being questioned by consumer groups.

She said the ERC has required Meralco to comment on these concerns as part of due process.

Meralco vice president William Pamintuan, meanwhile, denied allegations that the PSAs were "midnight deals" that were signed before the imposition of a rule mandating a competitive selection process for power supply agreements.

Pamintuan also insisted that while Meralco has stakes in several of the power generation companies mentioned, it is not the policy of Meralco to favor these companies.

Meralco maintained that these PSAs represent the least cost to consumers.

ERC Commissioner Josefina Asirit meanwhile denied that the ERC is already set approve the power supply agreement between Meralco and Atimonan One Energy Inc. after the commission approved a dedicated facility that will connect Atimonan's proposed power plant to the national grid.

Atimonan One Energy Inc. is owned by Meralco.

Asirit said it was a technical requirement for the proposed plant to be able to connect to the national grid. - with a report from RG Cruz, ABS-CBN News

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