THE House Committee on Good Government and Public Accountability and House Committee on Energy said Energy Regulatory Commission (ERC) officials may face possible violations of the antigraft law for allowing electric companies, including Manila Electric Co. (Meralco), to forgo the bidding of power-supply agreements (PSAs).
In a committee report, the two panels said they will refer the findings and conclusions of possible commission of malfeasance, misfeasance and nonfeasance to proper government bodies.
The panels also recommended to the quasijudicial bodies the filing of appropriate charges against ERC officials while the regulatory commission is resolving Meralco’s seven questioned PSAs.
“The ERC commissioners have committed malfeasance, misfeasance and nonfeasance, rendering illegal ERC’s issuance of Resolution 1 series of 2016 that delayed the effectivity of the competitive selection process,” the report said.
According to the report, ERC officials committed acts prohibited under the Anti Graft and Corrupt Practices Act.
Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna said the possible violations that the ERC committed in the handling of the Meralco-linked PSAs would not have come to light if the matter had not been taken up in the lower chamber.
Zarate is the author of House Resolution 566 urging the lower chamber to look into the filing of seven “questionable” PSAs before the ERC.
“In a way, I think we achieved one of our main objectives in raising this issue. The consumers didn’t know about this then. Meralco appears untouchable, ‘Let’s not look into that.’ But because of the committee hearings, everything came out,” Zarate said.
The controversial PSAs include the Redondo Peninsula Energy Inc. (which is applying for a 225-megawatt [MW] plant), Atimonan One Energy Inc. (1,200 MW), the Saint Raphael Power Generation Corp. (400 MW), Central Luzon Premiere Power Corp.(528 MW), the Mariveles Power Generation Corp. (528 MW), the Panay Energy Development Corp.(70 MW), and the Global Luzon Energy Development Corp. (600 MW).
Zarate has claimed that the ERC bent its own rules to accommodate these alleged “sweetheart deals,” which he described as onerous and disadvantageous to consumers.
The lawmaker called out the ERC for choosing not to have the PSAs undergo bidding or the required competitive selection process.
According to Zarate, consumers will shoulder P930 billion in additional power rate expenses within the 20- to 21-year duration of the power-supply deals if the ERC approves the PSAs.