Gatchalian hails SC order to rebid power supply deals

Sen. Sherwin Gatchalian. INQUIRER.net file photo / CATHY MIRANDA

MANILA, Philippines — The Supreme Court’s order for the rebidding of all power supply agreements (PSAs) submitted by distribution utilities (DUs) from June 30, 2015, will mandate “greater transparency” in the energy sector, Senator Sherwin Gatchalian said Tuesday.

Gatchalian, chair of the Senate committee on energy, said the High Court’s ruling requires PSAs to undergo competitive selection process (CSP) instead of directly negotiated deals, which, he said, “could be burdensome to many Filipinos.”

READ: SC orders rebidding of power supply deals

https://newsinfo.inquirer.net/1114316/sc-orders-rebidding-of-power-supply-deals#ixzz5nCY6gUJD 

“The Supreme Court decision … is a win for power consumers who are distrustful of sweetheart deals between DUs and generating companies,” Gatchalian said in a statement. 

“SC’s decision will mandate greater transparency in the contracting of power supply in the future,” he added.

Gatchalian noted that data from the Energy Regulatory Commission (ERC) showed 93 PSAs filed from March 23, 2016, to April 29, 2016, which were bilaterally contracted. 

He said that seven of the PSAs of Manila Electric Company (Meralco) were deemed “questionable.”

The senator lauded Bayan Muna chair and senatorial candidate Neri Colmenares for “fighting for the welfare of consumers.” Colmenares was one of the petitioners of the case.

“His (Colmenares’s) dedication to seeing this case through to the end is certainly worthy of emulation,” Gatchalian said.

In a ruling, the SC said the ERC committed “grave abuse of discretion” when it issued resolutions postponing the effectivity of the competitive selection process (CSP) requirement.

The Court said the authority of the ERC was limited to the implementation of the CSP, and that the ERC has no power and authority to postpone the CSP’s application. /cbb