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SC decision to delay construction of Atimonan coal power plant, says Meralco


The latest decision of the Supreme Court requiring Competitive Selection Process (CSP) for all power supply agreements submitted by power distributors to the Energy Regulatory Commission (ERC) would delay the construction of a 1,200-megawatt coal-fire power plant in Atimonan, Quezon, distribution utility Manila Electric Co. (Meralco) said Tuesday.

"I think it could delay the construction of much needed power plant," Meralco president and CEO Ray Espinosa said in a press conference in Pasig City.

The high court has ruled that all power supply deals entered into distribution utilities on or after June 30, 2015 must undergo a CSP. 

The case stemmed from a petition filed by the Alyansa Para sa Bagong Pilipinas Inc. against the ERC, the Department of Energy (DOE), and several power distribution utilities, including Meralco, in 2016.

The petition sought a temporary restraining order against ERC resolutions that postponed the implementation of the requirement and the nullification of seven "midnight" deals Meralco allegedly entered into while the CSP requirement was not in effect.

CSP is a form of competitive public bidding for distribution companies' purchase of electricity.

Meralco Powergen Corp.'s Atimonan One Energy coal plant project is among the seven power supply agreements filed by Meralco in April 2016.

With the SC decision, Espinosa said, "It means that if we want to pursue Atimonan [project] then we have to go to the CSP."

"Once things become more clear as to the CSP then we will obviously act as fast as we can," he said.

"We will respect the decision of the SC we will heed the direction as well that we follow the competitive selection process...," he added. —LDF, GMA News

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