ERC scored for delay in power supply deals
Officials of the House of Representatives questioned the Energy Regulatory Commission on why it has not yet approved contracts of power supply generators even if it has already taken them at least five years to study their applications. File
MANILA, Philippines — Officials of the House of Representatives questioned the Energy Regulatory Commission on why it has not yet approved contracts of power supply generators even if it has already taken them at least five years to study their applications.
“We have to quickly resolve this and be considerate with investors; time is cost if we continue to delay the approval process,” House Minority Leader Rep. Danilo Suarez said during a recent hearing held by the House committee on energy.
The Quezon congressman has repeatedly asked why ERC is delaying the approval of the power supply agreements, a regulatory requirement to construct power plants, of generation companies.
Suarez cited in particular Atimonan One, a coal-fired power plant in Atimonan, Quezon that has not been cleared by the ERC until now, even if the generation company submitted its application in 2012.
It is one of the seven PSAs that entered into a contract with the Manila Electric Co. but which is still being evaluated by ERC.
The opposition leader urged ERC officials to hasten the approval of foreign investors’ applications to build power plants that would help generate much-needed base load in the country.
Suarez said if the energy regulatory body continues to prolong the application process, the investors might back out and the country in effect loses the opportunity to address the alarming thinning power reserve.
Last month, the National Grid Corp. of the Philippines issued five yellow alerts, a situation when reserve power falls below the required level.
- Latest
- Trending
