Approval of 7 power deals bane to customers – solon

In a bid to protect consumers from possibly shouldering a whopping 1930 billion in additional power rate expenses, a lawmaker warned anew Energy Regulatory Commission

(ERC) Chairperson Agnes Devanadera not to approve seven power contracts that it claims is disadvantageous to the public.

Anakpawis Party-list Rep. Ariel Casilao was referring to the proposed power supply agreements (PSAs) being sought by Manila Electric Company (Meralco)linked generation companies before the ERC.

“Makabayan already posed the warning of a graft charge when Devanadera assumed the post,” Casilao said, referring to the official's assumption of her post almost two years ago.

“And we will make sure to pursue the case once Devanadera maintains her position in endorsing the sweetheart deals,” stressed the congressman.

The PSAs, which include deals on the construction of coal-fired power plants, are connected to these Meralcolinked generation companies: Redondo Peninsula Energy Incorporated (for a 225-megawatt [MW] plant); 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).

To show that it meant business, Casilao's Makabayan colleague, Bayan Muna Party-List Rep. Carlos Zarate and Bayan Muna Chairman Neri Colmenares last week filed an intervention before the Supreme Court (SC) to declare null and void the PSAs that Meralco negotiated with its sister generating companies in 2016.

It was Zarate who led a House inquiry on the questionable PSAs in the 17th Congress via House Resolution (HR) No. 566.

The Committees on Good Government and Public Accountability and on Energy took part in the investigation, wherein it was learned that the PSAs were accepted by the ERC after the 5 p.m., April 29, 2016 deadline set by the Commission itself.

Moreover, Zarate said that based on his computation, consumers will shoulder the whopping 1930 billion in additional power rate expenses should the ERC approve the power deals, which have a duration of 20 to 21 years.