ERC puts on hold Meralco’s PSA with MPGC, GLEDC

by Lenie LecturaSeptember 28, 2016

from Business Mirror

THE applications for a power supply agreement (PSA) of the Manila Electric Co. (Meralco) with Mariveles Power Generation Corp. (MPGC) and with Global Luzon Energy Development Corp. (GLEDC) were put on hold by the Energy Regulatory Commission (ERC).

In separate orders, the ERC cited an agreement reached in its  August 9  meeting that the commission en banc unanimously resolved to hold in abeyance the processing of pending applications for approval of PSA, which were without environmental compliance certificate (ECC).

The ERC said MPGC and GLEDC have not yet secured an ECC for their power plants.

“The foregoing considered, the processing of said application is hereby held in abeyance,” the ERC said.

“The ERC fully shares the DENR’s concern to ensure the protection of the environment, and is determined to help safeguard the people’s right to a balanced and healthful ecology in accordance with the Constitution,” ERC Chairman Jose Vicente Salazar said.

The ERC’s move was in response to the request of the DENR for the former to suspend the process of approvals of any PSAs pending before the ERC in view of the ongoing reevaluation of ECCs. An ECC is required by the DENR for any project in the Philippines that poses a potential environmental risk or a significant impact to the environment, such as mining, agriculture projects, or construction.

The ECC certifies the proposed project or undertaking will not cause a significant adverse  impact on the environment. It contains specific measures and conditions that must be accomplished by the project proponent before and during the operation of the project.

The ECC also certifies the proponent has complied with all the requirements of the Environmental Impact Statement System and has committed to implement its approved Environmental Management Plan. Meralco PowerGen, the power-generation arm of Meralco, earlier acquired a 49-percent stake in MPGC, which is a wholly-owned subsidiary of SMC Global Power Holdings Inc.