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Consumer lawyer slams Malampaya consortium




No legal personality to stop bidding


Consumer lawyer Paris G. Real has slammed the Malampaya consortium for seeking a temporary restraining order (TRO) from the Taguig Regional Trial Court on the 600MW and 400MW Competitive Selection Process (CSP) of Meralco. The CSP will assure additional supply needed to cover power consumer requirements starting next year.


Real, one of the intervenors in the case who was arguing on behalf of electricity consumers, pointed out that least cost cannot be sacrificed to favor business interests at the expense of consumers.


He said the jurisdiction falls solely on the power regulator to address issues in the energy sector.


“It was clearly established from the hearing that the Energy Regulatory Commission, not the regional trial courts, has original exclusive jurisdiction to hear cases between participants in the energy sector. ERC also has authority to issue cease and desist orders, if warranted,” he said.


Moreover, the consumer lawyer also hit the Malampaya consortium for stopping a bidding where it is not a direct participant.


“In this case, plaintiffs are not generation companies but explorers/producers of gas. As such, they have no legal personality to question a bidding process that only generation companies can participate in - especially one that the bidders themselves, including clients of petitioners, are not questioning,” Real said.


Further, the CSP policy of the Department of Energy (DOE) mandates all distribution utilities (DUs) like Meralco to source power without discrimination or preferential treatment and at the least-cost manner.


“The hearing elicited information that the DOE itself has a policy of requiring that bidding processes not refer to a specific type of technology or power plant. Equally important is the clear legal mandate for Meralco to supply electricity to its customers in the least cost manner. Plaintiffs themselves admit that the sole determinant for winning in Meralco’s CSP is price, but insist that preference should be given to those that use indigenous gas,” Real said.


“Lumalabas na gusto ng petitioners na kahit mas mahal pa ang indigenous gas, isawalang bahala ang mandato ng least cost supply - malinaw na makakapahamak ito sa kapakanan nating mga kumokonsumo ng kuryente,”he averred.


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