ERC hopes to resolve at least 3 pending power supply deals by yearend

THE Energy Regulatory Commission (ERC) is targeting to resolve within the year at least three of the seven power supply agreements (PSAs) applied for by distribution utility Manila Electric Co. (Meralco), one of its officials said on Monday.

“Within the year [for the three], (there’s still time in) 2017,” ERC Commissioner Josefina Patricia A. MagpaleAsirit told reporters when asked about the chance of an approval for any of the PSAs any time soon.

“It’s going through the process,” she said on the sidelines of a power competition seminar hosted by the Energy Policy and Development Program on Monday at Bonifacio Global City in Taguig.

In May 2016, Meralco sought ERC approval to source power from seven generation companies: Redondo Peninsula Energy, Inc.; St. Raphael Power Generation Corp.; Atimonan One Energy, Inc.; Central Luzon Premiere Power Corp.; Mariveles Power Generation Corp.; Panay Energy Development Corp.; and Global Luzon Energy Development Corp.

The PSAs have been criticized by some sectors, including consumer groups, because they were filed just before rules requiring PSAs to go through a competitive selection process came into force.

A unit of Meralco has a stake in three of the generation companies, which are the ones that might be cleared within the year. Three others lack the required environmental compliance certificate (ECC). Panay Energy has secured provisional approval.

Ms. Magpale-Asirit said the companies with pending ECCs are Central Luzon Premiere, Mariveles Power and Global Luzon Energy.

She said the ERC had received petitions for intervention from several quarters, including National Association of Electricity Consumers for Reforms, which is an intervenor in all the cases.

“Barring other complications we should be able to consider a lot of the issues that have been put forth on the applications or the PSAs that are before us,” she added.

She said Panay Energy had been issued a provisional approval because it specifically sought the interim relief. She said the others had asked for a final determination from the ERC on their PSA applications.

“But it would really help if we had the new leadership or an appointment of a chair and CEO already forthcoming,” she said.

Ms. Magpale-Asirit was referring to a directive from the Office of the President dated Oct. 6, 2017 ordering the dismissal of Jose Vicente B. Salazar as ERC chairman and chief executive after finding him guilty of simple and grave misconduct.

“Even with the four commissioners, we are able to function as a commission in terms of the deliberative process that is required for a decision,” she said. —