ERC says at least 20 electric firms lack approved supply deals


Posted at Mar 20 2023 07:13 PM

MANILA - At least 20 power distributors have been operating without ERC-approved power supply agreements, the Energy Regulatory Commission said on Monday.

This was revealed during a Senate hearing on an allegedly questionable deal between a regional distribution utility and a power supplier. 

The Senate conducted a hearing on power distributor San Fernando, La Union Electric Light and Power Company (SFELAPCO) which the ERC said entered into an agreement with Aboitiz Power Renewables Inc (APRI) sans approval from the ERC. 

This unsanctioned deal allegedly led to over P654 million in erroneously collected fees by SFELAPCO.

SFELAPCO’s General Manager Jose Lazatin meanwhile said the amount represented pass-through fees which they also passed on to their power generator.

Lazatin said they did not benefit from the P654 million collected.

SFELAPCO also said the company had been waiting on the ERC since 2013 to act on their power supply deal. The company said APRI even filed a motion to resolve in 2018 with the ERC.

Meanwhile, Senator Sherwin Gatchalian blasted SFELAPCO for failing to do a Competitive Selection Process before its deal with APRI expired last year. This led to the emergency power supply agreement SFELAPCO entered into with GN Power which led to a 50 percent increase in power rates starting February 2023.

- Report from Warren de Guzman, ABS-CBN News