|
THE
Office of the Solicitor General (OSG) has opposed the
P20.5-billion joint settlement agreement between the
National Power Corp. (Napocor) and the Manila Electric
Co. (Meralco) to resolve their dispute over the 10-year
contract requiring Meralco to purchase electricity from
Napocor, saying it placed “at great risk” the finances
of the government.
Meralco
has defaulted on the required purchases of power, but
under the joint agreement, the Napocor waived its claims
under the contract.
The
National Association of Electricity Consumers for
Reforms Inc. (Nasecore) estimated the receivables from
Meralco in the amount of P52 billion, representing
principal, interest and surcharges on Meralco’s failure
to purchase contracted power with Napocor based on their
10-year sales contract.
Government chief counsel Agnes Devanadera has asked the
Energy Regulatory Commission (ERC) to declare null and
void “for being contrary to law, morals and public
policy” the joint settlement agreement based on the fact
that the agreement was not submitted by the Napocor for
review by the OSG, in violation of the Revised
Administrative Code of 1987, Executive Order 292 and the
charter of Napocor.
She also
agreed with the position of the Nasecore that the
pass-on provision of the agreement will result in an
electricity-rate increase of around P0.12 per
kilowatt-hour (kWh).
The
Solgen also accused Napocor of going beyond its
authority when it waived its claims under the contract,
making the agreement illegal and disadvantageous to the
government. She added it was not only imprudent for the
Napocor board not to pursue the claim against Meralco,
considering its present financial standing, but such
decision also “effectively. . .placed at a great risk
the financial resources of the government.”
She
said the Supreme Court has held that an agreement which
tends to operate to the detriment of the public interest
is against public policy and, therefore, void. “It
being an onerous provision inimical to the interest
of the consuming public, the same should be struck
down for being against public interest and public
policy,” stressed Devanadera.
The
Nasecore has been prodding Napocor to pursue the
P52-billion receivables of Napocor from Meralco, and has
also asked the ERC to dismiss the application for the
approval of the settlement agreement, but the ERC has
yet to act on its motion, prompting Nasecore to seek the
OSG’s intervention.
Under
the joint agreement signed in 2003, Meralco’s failure to
follow the agreement has placed it in the position of
being liable to pay Napocor an estimated amount of P27.5
billion in unconsumed energy, which is equivalent to
18,222 gigawatt-hours (gWh) valued at P1.51 per kWh.
The
agreement also required Napocor to give Meralco credit
due to the delayed completion of transmission facilities
as well as for energy corresponding to Napocor’s sales
to directly-connected customers located in Meralco’s
existing franchise areas, which corresponds to P7.465
billion.
The
agreement further states that such credit substantially
reduced the claim of Napocor to P 20.05 billion—to be
passed on to Meralco’s 4 million consumers.
“The
delivery of electricity to the consuming public
involves public service that affects national
security, economic growth and public interest. Thus, it
is quite unfathomable to learn that the settlement
agreement amounting to billions of pesos never
passed the legal mill of the Office of the
Solicitor General,” said Devanadera.
“As
the counsel for the Republic, the OSG must ensure
that it must protect the interest of the consumer,
promote his general welfare by protecting it against
deceptive, unfair and unconscionable acts and
practices,” she added.
The OSG
further noted that Napocor’s charter did not grant the
energy body the power to compromise or release any
settled claim, since such power belongs to the
Commission on Audit (COA) as provided by Presidential
Decree 1445 or the Government Auditing Code of the
Philippines.
She
added that under Executive Order 292, the power to
compromise was to be exercised only by the COA with the
approval of the President if the amount involves more
than P100,000.
“The
required approvals were never sought by Napocor....Thus,
Napocor’s original claim from Meralco for contracted but
unconsumed energy was reduced by around P7.465 billion.
The reduction constituted a waiver of a valid claim
worth billions of pesos, and the Napocor board went
beyond the authorized limits set by existing laws.”
|
