Philippines: ERC defers approval of 9 power supply agreements

Philippines: ERC defers approval of 9 power supply agreements

Responding to the concerns of Department of Environment and Natural
Resources (DENR) regarding the issuance of Environmental Compliance
Certificates (ECC), the Energy Regulatory Commission (ERC) has delayed the
approval of as much as nine power supply agreements and contracts.

A document showed that ERC "resolved to hold in abeyance" the processing of
pending applications for approval of power supply agreements without the
required ECC from DENR.

"The Commission received a letter from the DENR informing it of the ongoing
re-evaluation of the Environmental Compliance Certificates and further
requesting that the Commission suspend the process of approvals of any power
supply agreements pending before it in light of this re-evaluation," ERC
said in an order.

"The Commission shares the DENR's concern in ensuring the protection of the
environment and is determined to help safeguard the people's right to a
balanced and healthful ecology in accordance with the Constitution," it
added.

In separate files, ERC decided to put on hold the approval of the Power
Supply Agreements (PSA) between Mariveles Power Generation Corporation
(MPGC) and five companies including Manila Electric Co. (Meralco).

"Relevantly, the initial evaluation of the above-captioned application,
together with its annexes disclosed that that the Mariveles Power Generation
Corporation has not yet secured an ECC for the power plant subject thereof,"
ERC said.

"The foregoing considered, the processing of the instant application is
hereby held in abeyance," it further said.

Other companies that MPGC would like to have separate PSAs and Power Supply
Contracts (PSC) with are: Global Luzon Energy Development Corporation
(GLEDC), Tarlac I Electric Cooperative, Inc. (TARELCO I), Aurora Electric
Cooperative, Inc. (AURELCO), and Pampanga II Electric Cooperative, Inc.
(PELCO II).

ERC also didn't give the green light to the PSA between Palawan Electric
Cooperative, Inc. (PALECO) and Delta P, Inc. (DELTA P) as well as between
Cagayan Electric Power and Light Company, Inc. (CEPALCO) and Minergy Power
Corporation (MPC).

Because of the same reason, ERC haven't yet allowed Misamis Oriental II
Electric Service Cooperative, Inc. (MORESCO II) and Astronergy Development
Mindanao, Inc. (ASTRONERGY) to proceed with their Renewable Energy Supply
Agreement.

ERC likewise hold its go signal to the Electric Power Purchase Agreement for
the Unit 2 between the Iloilo I Electric Cooperative, Inc. (ILECO I) and
Palm Concepcion Power Corporation (PCPC).

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Ref:
http://www.mb.com.ph/erc-defers-approval-of-9-power-supply-agreements/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com