Makabayan warns of graft rap if coal deals OK’d

Anakpawis Rep. Ariel Casilao

MANILA, Philippines — Anakpawis Rep. Ariel Casilao on Friday warned Energy Regulatory Commission (ERC) chair Agnes Devanadera of more graft cases if she approved seven allegedly questionable power supply contracts pending at the commission.

In a statement, the lawmaker said the bloc would push through with filing the graft case it had prepared since Devanadera assumed the post in 2017.

“We will pursue the case once Devanadera maintains her position in endorsing the sweetheart deals,” Casilao said.

The Makabayan bloc in the House of Representatives is opposing the approval by the ERC of seven power supply agreements (PSAs) filed by power generation companies linked with Manila Electric Co. (Meralco).

These included Atimonan One Energy Inc. and Central Luzon Premiere Power Corp., both in Quezon province, which are applying for a PSA for 1,200-megawatt (MW) and 528 MW plants; Global Luzon Energy Development Corp. (600 MW) in La Union; Mariveles Power Generation Corp. (528 MW) in Bataan; St. Raphael Power Generation Corp. (400 MW) in Batangas; Redondo Peninsula Energy Inc. (225 MW) in Zambales; and Panay Energy Development Corp. (70 MW) in Iloilo province.

Last week, Bayan Muna filed a petition at the Supreme Court seeking to nullify the PSAs.

The petition alleged that Meralco negotiated contracts with its subsidiaries for electricity which was “historically overpriced” by as much as 20 percent.

Prudent

Bayan Muna Rep. Carlos Zarate led a House inquiry on the PSAs at the 17th Congress where it was revealed that the PSAs had been submitted to the ERC past deadline.

Bayan Muna said at least P930 billion would be added to power rates during the 20- to 21-year duration of the PSAs.

“I think the prudent way now for the ERC to prove that there is no partiality is for these PSAs to be subjected to the commission’s own rules,” Zarate said, reiterating calls to subject the selection through a competitive process or a public bidding.

Casilao has questioned the delay of ERC action on petitions against the proposed coal-fired plants.

“The delay is very suspicious. It’s a possible administrative negligence,” said Casilao.