ERC commissioners ordered suspended

THE Office of the Ombudsman has ordered the suspension of top officials of the Energy Regulatory Commission (ERC) in connection with “unwarranted benefits” to the Manila Electric Co. (Meralco) and its affiliates in the course of their securing Power Supply Agreements with the agency.

ERC Commissioners Gloria Victoria C. Yap-Taruc, Alfredo J. Non, Josefina Patricial A. Magpale-Asirit, and Geronimo D. Sta. Ana were ordered suspended for one year without pay for violating Section 3(e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act.

Dismissed chairman and CEO Jose Vicente B. Salazar was also ordered suspended, in lieu of which, the Ombudsman said in its decision, “the penalty is converted into a fine in the amount equivalent to respondents’ salaries for six months payable to the Office of the Ombudsman and may be deductible from respondents’ retirement benefits, accrued leave credits or any receivables from their offices.”

In that decision dated Sept. 29 and released this week, the Ombudsman said the extension of a deadline by the ERC in its Competitive Selection Process (CSP) gave leeway for seven distribution utilities (DUs) affiliated with Meralco to bag “lucrative power supply agreements without complying with the mandated CSP.”

“Their gross inexcusable negligence led to the circumvention of the government policy requiring CSP, and denied the consumers the ‘opportunities to elicit the best price offers and other PSA (power supply agreement) terms and conditions from suppliers,’” the Ombudsman said.

The Ombudsman said the extension was done “purportedly to pursue the government’s policy of infusing competition and implementing CSP in PSAs and PSCs (petroleum service contracts), but which, as evidence shows, digresses from said policies to favor companies.”

Lawyer Neri J. Colmenares, a petitioner in this case, said in an interview with DZMM that the officials so charged are now deemed “suspended.” With the Ombudman’s decision, Mr. Colmenares said, “Do not ever rush the approval of these contracts kasi wala na kayong poder to issue that (because you don’t anymore the authority to issue that)….”

But Floresinda B. Digal, ERC spokesperson, said when sought for comment: “Considering that the ERC is under the Executive Department, the Commission will be seeking guidance from the Office of the President relative to the recently released Ombudsman decision, especially that this will have a significant impact not only to the electricity consumers but to the economy as well.”

Also sought for comment, Presidential Spokesperson Harry L. Roque, Jr. said “the day-to-day affairs of the Energy Regulatory Commission will continue. Although, if all the commissioners…are suspended, then they cannot agree on policy issues because they are (a) collegial body according to the EPIRA (Electric Power Industry Reform Act) law.” — Minde Nyl R. dela Cruz with Arjay L. Balinbin