Meralco power supply agreements in question due to absence of ECCs

PSA

Three of the power supply agreements (PSAs) of Manila Electric Co. (Meralco) will have to be dismissed by the Energy Regulatory Commission (ERC) unless environmental certificates (ECCs) are secured within the month, a top official said.

The commission released an order to the companies involved in three Meralco PSAs to get ECCs, ERC chairman and CEO Agnes Devanadera said.

“We have issued an order for the cases without ECCs for them to comply within 60 days and the 60th day will be June…otherwise we will have to deal with it most likely dismissal,” she said.

Central Luzon Premiere Power Corp. (CLPPC) and Mariveles Power Generation Corp. (MPGC) of the San Miguel Corp, and Global Luzon Energy Development Corp. (GLEDC) of the Global Business Power Corp. still lack ECCs.

Rolando Peninsula Energy Inc. (RP Energy), St. Raphael Power Generation Corp. (MGEN) are still undergoing procedural processes.

Devanadera said the ERC will start deliberating on their respective PSAs once ECCs are secured from the Department of Environment and Natural Resources (DENR).

“If they don’t have ECCs yet, we will dismiss the cases. If they secure the ECCs, then the process will start,” she said.

Out of the seven PSA, Meralco’s contract with panay Energy Development Corp. (PEDC) was given provisional authority in July 2016.

Meralco is hoping that the three PSAs will be approved by the ERC. However, the retirement of two commissioners in July could impede the process of approval.

“I believe the retirement of the two commissioners is with certainty in July, of course we are we are hopeful that those that will be appointed are grounded on the power industry, if possible practitioners so that the learning curve will not be as long,” Meralco first vice president and regulatory management head Ivanna dela Peña said.

Higher rates within Meralco’s franchise area could happen if the PSAs are not approved soon, MGen president Rogelio Singson said.

CLPPC and MPGC will each build a 4×150-MW circulating fluidized bed coal-fired power generating facility in Pagbilao, Quezon and Mariveles, Bataan which are scheduled to start operations no later than 2021 and 2020, respectively.

GLEDC, on the other hand, intends to build a 2×335-MW coal-fired power generating facility in Barangay Luna, La Union, which is scheduled to become operational by 2022.

 

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