Bayan Muna hits Meralco for ‘dubious’ power deals

Bayan Muna Rep. Carlos Zarate slammed the Energy Regulatory Commission’s (ERC) green light to construct the P1.7 billion transmission line for a power plant project of a Manila Electric Company (Meralco) subsidiary.

In a statement Monday, Zarate said the transmission line was approved before the ERC completed its review of the power supply contract between Meralco and the power plant Atimonan One.

“The approval suggests that the approval of the power supply agreement (PSA), which is being questioned in various fora  — including the House of Representatives, the Office of the Ombudsman, the Supreme Court, and even Malacañang itself — is a foregone conclusion,” Zarate said.

Zarate said the 1,200 megawatt project of Atimonan One Energy Inc. could mean the ERC also approved the supply agreements between Meralco and six other generation companies the company allegedly controls.

“Does the decision to approve the transmission line project for the 1,200-megawatt project of Atimonan One Energy Inc. (Atimonan One) mean that ERC has already approved the power supply agreements (PSA) not only between Meralco and Atimonan One, but, also between Meralco and six (6) other Meralco-controlled generation companies?” Zarate asked.

Zarate alleged the seven PSAs awarded without bidding to the generation companies may force Meralco customers to pay P91 billion in generation charges yearly.

Through the 20 to 21-year duration of the contracts, Meralco customers may be forced to pay almost P2 trillion in generation charges, excluding distribution and transmission line charges and other costs, Zarate added.

Zarate said Meralco was already investigated in the lower House in 2016 about the allegedly disadvantageous supply agreements and about Meralco’s alleged illegal self-dealing.

“These are serious allegations involving not only billions but trillions of pesos to be taken from the already overburdened pockets of Meralco customers. These must be investigated and resolved before the supply agreements can be acted upon. For these PSAs to be approved before the investigations are completed could be harmful to the interest of the general public,” Zarate said.

He said that the ERC’s approval of the transmission line for the Atimonan One project “looks like an attempt to clear the way for the eventual approval of the PSAs themselves.”

Zarate warned that the ERC commissioners may face contempt and criminal charges for allowing “dubious deals.”

“We read a published report that Malacañang likewise has ordered an investigation of the ERC commissioners for their dubious ties with Meralco. If ERC commissioners persist in accommodating the dubious deals, they risk facing not only contempt but also criminal charges,” Zarate said. JE