ERC, consumer groups thresh out issues on electricity supply deals

MANILA, Philippines — The Energy Regulatory Commission (ERC) is threshing out issues with consumer groups over the competitive selection process (CSP) and the pending power supply agreements (PSA) of Manila Electric Co. (Meralco).

ERC chairperson and CEO Agnes Devanadera held a dialogue with several consumer groups to listen to their concerns, particularly on the CSP and the Meralco PSAs still pending with the ERC. 

The forum was attended by representatives from the Freedom from Debt Coalition (FDC) and United Filipino Consumers and Commuters (UFCC).

“This consumer dialogue started from a simple conversation and has now developed into a forum where we can discuss the consumers’ issues and concerns on electricity matters. We will take their issues into consideration, but we also have to manage their expectations considering the fact that there is already a pending case before the Supreme Court on CSP,” Devanadera said.

In November 2016, consumer group Alyansa Para sa Bagong Pilipinas Inc. (ABP) asked the Supreme Court to stop the ERC from approving a 20-year PSA between Meralco and several general companies involving 3,551 megawatts (MW).

The CSP policy—which requires distribution utilities and electric cooperatives to undertake competitive bidding to secure PSAs with generation companies—was supposed to start on Nov. 7, 2015 but implementation was moved to April 30, 2016 to give power players a transition period to comply.

On the new deadline, Meralco filed seven PSAs with the ERC covering 3,551 MW of supply from generation plants which are mostly owned or partly owned by Meralco through its power generating unit Meralco PowerGen Corp.

But last month, the Office of the Ombudsman ordered the suspension of ERC commissioners Alfredo Non, Gloria Yap-Taruc, Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana for one year without pay for delaying the conduct of competitive bidding in securing PSAs.

The Ombusdman said delay in implementation negated the policies contained under the Electric Power Industry Reform Act of 2001 (EPIRA) and CSP resolutions to protect the interests of consumers.

With the suspension of the four commissioners, Devanadera said this would paralyze the agency and the whole power industry with P1.59 billion worth of pending applications before the agency.