Junking of power deals to save consumers from hefty rate hikes – solon

A militant congressmen said that voiding the seven Manila Electric Company (Meralco)-linked power supply agreements (PSAs) pending before the Energy Regulatory Commission (ERC) will save consumers from hefty power rate hikes.

Bayan Muna Party-List Rep. Carlos Zarate stressed this after he and his party-list group filed on Thursday a petition for intervention before the Supreme Court (SC) to declare null and void the PSAs that the power utility giant negotiated with the seven generating companies in 2016.

“Yes, it is absolutely necessary [to junk these deals] because it will be another burden to consumers already reeling from TRAIN,” Zarate said, referring to the Tax Reform for Acceleration and Inclusion Act which added excise taxes on coal and petroleum products.

“For the benefit of the already struggling consumers, we demand no less than the junking of the said sweetheart agreements and submit Meralco’s power supply needs to the competitive selection process or bidding,” said the Davao-based congressman.

The PSAs, which include deals on the construction of coal-fired power plants, are connected to the following generation companies: Redondo Peninsula Energy Incorporated (for a 225-megawatt [MW]); Atimonan One Energy Incorporated (1,200 MW); St. Raphael power Generation Corporation (400 MW); Central Luzon Premiere Power Corporation (528 MW); Mariveles Power Generation Corporation (528 MW); Panay Energy Development Corporation (70 MW); and Global Luzon Energy Development Corporation (600 MW).