An infrastructure-oriented thinktank renewed its warning of a power crisis during the holiday season as bureaucratic red-tape in the energy sector continues to delay the approvals of six power supply agreements (PSAs) in the Manila Electric Company (Meralco) concession area.
“It has been more than more than two months since the successful competitive selection processes (CSPs) mandated by the Department of Energy (DoE) and yet, there has been no progress in the regulatory process. The holidays are almost here but the Energy Regulatory Commission has not yet acted on any of the CSP-compliant proposals submitted to them.”
This was the statement of Terry Ridon, Infrawatch PH convenor and former House energy committee member.
Bureaucratic redtape
Ridon said the commission should not drag its feet in approving the CSP-compliant proposals because no less than President Rodrigo Duterte has recently reiterated his warning on delayed approvals of permits.
“With more than two months since the CSPs in the Meralco concession area, the ERC should be reminded that the President’s 30-day timeline for cabinet-level regulatory approvals had already been breached.”
Ridon said there is absolutely no reason for any delay at the ERC level, as the Supreme Court had already ruled that the Department of Energy’s CSP mechanism is a valid policy.
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Power rate hike looms
Ridon also warned of the possibility of a series of power rate hikes during the holiday season if the delays in ERC approvals continue.
“Without the additional capacity approved by December, the Meralco concession area will experience limited supply during the holiday season. As a result, the public will once again be forced to rely on higher power rates from the electricity spot market to cover at least 1,700 MWs. This is a prospect that is real, and a prospect that can only be resolved by the ERC exercising its mandate with haste.”
Ridon recalled that the ERC mentioned its ‘limited staff’ during a Senate hearing as one of the reasons why many petitions before the commission remain pending.
“Obviously, this is unacceptable reasoning specifically on CSP-compliant petitions as all documents have been publicly available from the beginning, and the price structure has been subjected to competitive bidding.”