Philippines - ERC: Meralco PSAs are not yet approved by commission

Philippines - ERC: Meralco PSAs are not yet approved by commission

CONTRARY TO A COLUMN POSTED ON A NEWSPAPER, NONE OF THE SEVEN POWER SUPPLY
AGREEMENTS (PSAS) OF THE MERALCO INVOLVED IN AN ALLEGED MIDNIGHT DEALS HAVE
BEEN APPROVED BY THE ENERGY REGULATORY COMMISSION (ERC).

In a joint hearing in Congress on Tuesday, Rep. Carlos Isagani Zarate cited
a column posted saying that the seven PSAs have been approved by the
commission.

"There is no such decision," ERC commissioner Josefina Asirit said, adding
that there were seem to be no basis for the statements made in the column
mentioned by the congressman.

When asked about the status of the seven PSAs, the ERC said that three of
them have not been scheduled for a hearing.

"Actually of the 7 PSAs, three have not even been scheduled for a hearing
yet because of the lack Environmental Compliance Certificate," she said.

According to the ERC, three PSAs are currently on hearing.

Meanwhile, the PSA with the Panay Energy Development Corporation was already
given a provisional authority.

The provisional authority means that the distribution utility the power to
draw power from the existing plant.

"If I'm not mistaken this one was to augment the supply status that the
demand of Meralco needed at the particular period," Asirit added.

The provisional authority, however, is still subject to final determination.

The ERC was accused of being involved with alleged 'midnight' deals to
accommodate Meralco PSAs involving different power plants.

These included Meralco PSAs with Panay Energy Development Corp. (70 MW),
Redondo Peninsula Energy Inc. (225 MW), St. Raphael Power Generation Corp.
(400 MW), Central Luzon Premiere Power Corp. (528 MW), Mariveles Power
Generation Corp. (528 MW), Global Luzon Energy Development Corp. (600 MW),
and the Atimonan One Energy Inc. (1,200 MW).

The next hearing on the alleged midnight deals will include the
representatives of the seven generation companies involved in the PSAs with
Meralco and is scheduled on October 11.

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Link to Original Article:
http://powerphilippines.com/2017/09/27/erc-meralco-psas-not-yet-approved-com
mission/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com