Statement of Senator Win Gatchalian on the Supreme Court order to subject power supply deals signed after 2015 to bidding

The Supreme Court decision ordering the bidding of all power supply agreements submitted by distribution utilities (DUs) from June 30, 2015 is a win for all power consumers who are distrustful of sweetheart deals between DUs and generating companies.

Data from the Energy Regulatory Commission shows that there are 93 PSAs filed from March 23, 2016 to April 29, 2016, with terms reportedly spanning more than 20 years, which were not bid out but were instead bilaterally contracted. Of the 93, seven PSAs of Meralco - with a total capacity of 3,550 megawatts out of the 4,600 MW - were deemed questionable.

SC's decision will mandate greater transparency in the contracting of power supply in the future since the High Tribunal mandates that power supply agreement should undergo competitive selection process (CSP) instead of directly negotiated deals, which could be burdensome to many Filipinos.

Finally, I would like commend former Rep. Neri Colmenares, one of the petitioners of the case, for fighting for the welfare of our consumers. His dedication to seeing this case through the end is certainly worthy of emulation.

Source: Senate of the Philippines