Rep. Zarate cites problems in ERC process surrounding Meralco power supply agreements

Bayan Muna party-list Representative Carlos Zarate on Wednesday questioned why four applications for power supply agreements (PSAs) submitted to the Energy Regulatory Commission (ERC) did not have time stamps when the agency received the documents.

The House Committee on Good Government and Public Accountability resumed its investigation into the alleged "midnight deals" between the ERC and power generation companies affiliated with the Manila Electric Co. (Meralco).

Zarate asked Cheryl Calindog of the ERC's docket section why four of the seven applications for power supply agreements did not have time stamps and the deadline for the submitting the documents have been adjusted to April 30, 2016.

The applications were from power-generation companies Central Luzon Premiere Power Corp., Global Luzon Energy Development Corp., Panay Energy Development Corp. and Mariveles Power Generation Corp.

Zarate had criticized the ERC for issuing Resolution No. 1 series of 2016 which extended the deadline for all distribution companies to conduct a competitive selection process (CSP) in power supply procurement to April 30, 2016.

The deadline was originally set for November 6, 2015 but was "mysteriously" moved to April 30, 2016, Zarate said.

The lawmaker considered these as "midnight deals," having been signed only four days before the "new [and] generous" deadline set by the ERC.

The PSAs gave Meralco 20-year power supply contract with seven companies.

Responding to Zarate's query, Calindog said the applications were already with the technical working group for assessment as early as April 29, Friday, but the physical documents were forwarded to the docket section on Monday, May 2.

"'Yung physical documents po finorward ng Monday as instructed sa amin before kami umuwi nung 29 dahil nasa technical pa yung documents na ina-assess nila so mare-receive namin on Monday morning," she said.

Calindog said the instruction came from Jojo Tomas, their director, who has since resigned from the ERC.

"April 29 po ng hapon [binigay yung instruction], bago po siya umalis ng office, naiwan po kami," she said.

Zarate said it was "very clear" that the applications were received way beyond the April 30 deadline, and they even had no time stamp.

"Doon palang may problema na, questionable na bakit tinanggap pa rin ng ERC beyond the April 29, 5 p.m. deadline posted on the website," he said.

Three other companies—Atimonan One Energy, Inc., St. Raphael Power Generation Corp., and Redondo Peninsula Energy Inc.—were able to submit the application on April 29, but beyond 5 p.m.

Earlier, Zarate said the alleged midnight deals resulted in the suicide of ERC Director Francisco Villa.

Villa, the brother of journalist Chari Villa, committed suicide inside his house in Parañaque City due to alleged corruption in the ERC.

The ERC director supposedly revealed that he was being pressured to approve ERC procurement contracts and hire consultants without going through proper bidding and procedures.

ERC chairman Jose Vicente Salazar has been dismissed from office after being found guilty of misconduct. — VDS, GMA News