SC urged to strike down Meralco's power supply deals

A consumer watchdog on Tuesday asked the Supreme Court (SC) to prevent the Manila Electric Company (Meralco) from securing regulatory approval for its power supply agreements with seven companies.

The Alyansa Para sa Bagong Pilipinas Inc. (ABP) also urged the high court to nullify the resolution of the Energy Regulatory Commission (ERC) to order all power distribution companies to conduct competitive selection process (CSP) in the procurement of power supply.

The petition said the ERC failed in its mandate under Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA) to promote competition with the end goal of benefiting the consumers.

“The resulting irreparable damage to the consumers arising from the 20-year contracts would easily translate to P12.44 billion a year that would be mercilessly hung on the necks of consumers like an albatross if these midnight power supply agreements are allowed to evade the law,” the petition stated.

“It will also sabotage the promotion of free and open market competition, and preclude the competition operation of the spot market,” it added.

Apart from Meralco and the ERC, the petition also named as respondents the Department of Energy, Central Luzon Premiere Power Corporation, St. Raphael Power Generation Corporation, Panay Energy Development Corporation, Mariveles Power Generation Corporation, Global Luzon Energy Development Corporation, Atimonan One Energy Inc., Redondo Peninsula Energy Inc., and Philippine Competition Commission (PCC).

Meralco, the country's largest distribution utility, announced in May that it had agreed to source 3,551 megawatts from coal-fired power plants located in some provinces such as Quezon, Zambales and Iloilo to ensure adequate and efficient electricity service, especially during summer months when the demand for power is high.

Meralco distributes power to the country's economic center, Metro Manila, and some parts of the provinces of Rizal, Cavite, Pampanga, Laguna, Quezon and Batangas. — BAP, GMA News