MVP’s monopoly of power and water supply
IN the nex t couple of months, a competitive selection process or bidding will be conducted by the Manila Electric Co. (Meralco) for the awarding of long-term contracts for the supply of power to the electricity distribution utility.
Energy Secretary Alfonso Cusi has been ordered to make sure that the terms of reference or bid parameters are fair or will not favor any entity.
Biddings in the past to grant certain sectors the permit to supply power were questioned in the Supreme Court, which then ruled in favor of the protesters.
The high tribunal ordered Cusi to ensure that the terms of reference for the bidding to be conducted by Meralco “must not again be tailor-fit to favor Meralco’s sister companies or friends.”
A public bidding in 2016 that awarded Meralco 20-year power supply agreements allowed the power utility to cut a deal with its sister companies, such as MGen.
The deal was considered a midnight contract or sweetheart deal. In Tagalog, lutong macau.
The high court gave credence to the allegation by the Alyansa Para Sa Bagong Pilipinas ( ABP) that the deal was lutong macau.
ABP claimed that Meralco signed midnight contracts with sister firms — Central Luzon Premiere Power Corp., St. Raphael Power Generation Corp., Panay Energy Development Corp., Mariveles Power Generation Corp., Global Luzon Energy Development Corp., Atimonan One Energy Inc. and Rolando Peninsula Energy Inc. — to cover 90 percent of Meralco’s power requirements.
Complainant ABP blasted then Energy Regulatory Commission Chairman Jose Salazar ( who was later fired by President Digong), Energy Secretary Cusi and the Philippine Competition Commission for their “betrayal and ineptitude” in protecting consumers.
It described the alleged midnight contracts as a “monopoly” ( and rightly so – RTT ) that spells manipulation.
The ABP underscored the mandate of ERC under the Epira
Law to promote competition, encourage market development, ensure customer choice and penalize abuse of market power.
Republic Act 9136, or the “Electric Power Industry Reform Act of 2001” ( Epira), primarily governs the electric power industry and its participants.
Epira aims to ensure and accelerate the total electrification of the country, and the quality, reliability, security and affordability of the supply of electric power.
So, it’s not only in water that Manny V. Pangilinan (MVP) and his boss, Indonesian Anthoni Salim, are lording it over.
Salim and his local dummy, Pangilinan, are into electricity as well.
MVP dummies for Salim in running Meralco.
Pangilinan has also cornered the contract to collect wastes in Quezon City to be converted into electricity.
But the contract will still take effect in the coming years as Pangilinan is still groping around for funds.
A huge Chinese waste- toenergy firm, Conch Venture Holdings ( HK) Ltd., offered to convert Quezon City’s wastes to energy immediately if it is given the contract, but has been turned down because the contract has been awarded to MVP.
Conch’s total assets are about $ 28.3 billion and its profit in 2018 amounted to $ 5.9 billion.
With Conch’s offer, the wastedisposal problem of Quezon City and neighboring areas would be solved while at the same time contribute to solving the country’s energy shortage.
Pangilinan — even without funds — has preempted other players like Conch to convert the city’s wastes into energy. Was it because of the Philippine Star, which was bought recently by MVP and the Salims from the Belmonte family?