Bayan Muna Representative Carlos Zarate (CDN PHOTO/CHOY ROMANO)
The decision of the Department of Energy (DOE) to certify as an “energy project of national significance” the proposed 1,200-megawatt coal plant in Atimonan, Quezon, was not an exemption from state regulations, Bayan Muna Rep. Carlos Zarate said on Friday.
Instead, he said the Energy Regulatory Commission (ERC) should implement the mandated competitive selection process (CSP) rule on Atimonan One Energy Inc., a subsidiary of Manila Electric Co. (Meralco), and on six other similar power supply agreement (PSA) applications of the power utility firm.
House probe
The militant lawmaker had filed a resolution which prompted the House of Representatives to look into the ERC’s move to defer the implementation of the CSP, a rule compelling power distributors to conduct competitive bidding for their energy supply to ensure the lowest electricity rates.
The state regulator made the decision a few months before Agnes Devanadera, a Quezon native, was appointed by President Rodrigo Duterte to head the ERC in November 2017.
“As regulator, the DOE’s order is not binding on the ERC. [It has] no bearing,” Zarate said.
Seamless approval
“[The ERC] is an independent commission. If they will just follow the order of the executive department, then let’s just abolish it,” the Bayan Muna lawmaker said.
Besides, Zarate said the DOE’s certification did not erase alleged violations committed by ERC officials for letting Meralco and other power utilities to ignore mandated bidding for their power supply requirements.
“Even if the proposed power plant has been declared as a project of national importance, the ERC remains as a government regulator. The DOE’s declaration should not automatically clear the violations committed,” he added.
The certification, issued by the Energy Investment Coordinating Council to Atimonan One on Sept. 11, would supposedly speed up the approval of the power plant project within 30 days.
“The easiest thing for the ERC to do is subject Atimonan One to the CSP rule. If they still win in the bidding and nobody contests the PSAs, then so be it,” he added.