Solon threatens to set aside ERC budget for ignoring House

A senior administration congressman on Wednesday warned that the proposed 2018 budget of the Energy Regulatory Commission (ERC) will be set aside if officials continue to ignore the House of Representatives’ demand for submission of documents vital to a legislative probe on questionable acts of the commission.

Bayan Muna Rep. Carlos Zarate issued the warning after being informed that ERC officials have yet to submit documents on Meralcoaffiliated power sale agreements and the Malampaya report to the House Committees on Good Government and on Energy.

During a pre-plenary conference of the two house panels, Zarate said the documents are vital to an ongoing probe into the questionable approval of long-term power supply contracts entered into by power distributor Meralco.

Zarate, who belongs to the Makabayan bloc, assailed ERC officials for not submitting copies of the seven Meralco PSAs and the minutes of ERC's deliberation on the extension of the Competitive Selection Process deadline, despite several congressional hearings pertaining to the issue, where ERC officials were specifically asked to submit the documents.

The congressional inquiry into the supposed “sweetheart deals” between Meralco and its sister companies are expected to determine ERC’s role in allowing Meralco to enter into PSAs with firms co-owned by the firm.

Zarate cited the complaints raised by consumer groups against ERC’s extension of the mandatory competitive process that paved the way for Meralco to enter into 20-year supply contracts with its alleged sister companies.

Complainants claimed the 20-year PSAs effectively tied down Filipino consumers to power supply deals that could cost 112.44 billion annually.

They pointed out that the seven PSAs of Meralco with its sister companies cover 3,551 megawatts, or approximately 90 percent of its power requirements for the next 20-25 years.

Zarate warned the commission that if the ERC documents along with the long overdue Malampaya report for its 2013 shutdown is not submitted then he would move for the deferment of their budget.

Zarate also questioned ERC's hasty approval of 158-billion cost recoveries by the Power Sector Assets and Liabilities Management Corp. (PSALM) which would be passed on to consumers, while noting that PSALM has yet to collect 1486 billion from its privatization efforts.

He also urged ERC to consider abolishing the systems loss charge.

Zarate identified EPIRA as the main culprit behind all these shady issues, which have only resulted in burdening the public with high electricity rates.