Philippines: ERC formally junks 'defective' power supply agreements

Philippines: ERC formally junks 'defective' power supply agreements

Eleven power supply agreements (PSAs) were junked by the Energy Regulatory
Commission (ERC) for having 'legally defective' contractual terms.

The supply deals established to have been flawed were that of the Biliran
Electric Cooperative and GN Power Dinginin Ltd.Co. (GNPD); La Union Electric
Cooperative and GNPD; North Cotabato Electric Cooperative with Western
Mindanao Power Corporation; and Camarines Sur Electric Cooperative IV and
Unified Leyte Geothermal Energy, Inc.

The others were with the Cebu Electric Cooperative I and Mariveles Power
Generation Corporation (MPGC); Davao del Norte Electric Cooperative, Inc.
and San Miguel Consolidated Power Corporation (SMCPC); Siargao Electric
Cooperative and SMCPC; Misamis Oriental Electric Cooperative, Inc. I and
SMCPC; Zamboanga del Sur I Electric Cooperative and SMCPC; and Nueva Vizcaya
Electric Cooperative, Inc. with San Miguel Energy Corporation.

The ERC noted "the 11 applications failed to meet the Commission's
requirements as regards verification and certification of non-forum
shopping."

Given that, the regulatory body emphasized that "the applications were
deemed legally defective."

The Commission expounded that "in the absence of any compelling reasons to
rule otherwise, (it) deemed the legal defects as sufficient ground to
dismiss the said applications."

Being a quasi-judicial body, ERC Chairperson Jose Vicente Salazar stressed
that they are "duty-bound to ensure that applicants and petitioners doing
business in its regulated field act with truthfulness and diligence in the
filing of their pleadings."

The regulatory thus noted that "to prevent a repeat of the foregoing
incident dismissal, the Commission has implemented a rigorous pre-filing
process in order to ensure that applications filed before the Commission are
in compliance with its requirements and resolutions."

Based on the relevant rules issued by the ERC, it is mandatory that
applications for approval of contracts must be accompanied by a verification
stating that the affiant had read the pleading; and that the allegations
therein shall be based on the his personal knowledge or backed by authentic
records.

Additionally, the ERC rules prescribe that "applications contain a sworn
certification of non-forum shopping" which shall also state that "the
applicant has not commenced any action or filed any claim involving the same
issues in any other court, tribunal or quasi-judicial body."

The ERC indicated "the 11 applications have failed to validly comply with
these twin requirements of verification and certification of non-forum
shopping."

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Ref:
http://www.mb.com.ph/erc-formally-junks-defective-power-supply-agreements/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com