Monday, April 28, 2008 Solgen told to review Napocor-Meralco settlement deal
THE National Association of Electricity Consumers for Reforms Inc. (Nasecore) has asked the Office of the Solicitor General to intervene in the P52-billion supply contract settlement agreement between National Power Corporation (Napocor) and the Lopez-owned Manila Electric Company (Meralco).
In a memorandum, the consumer group asked solicitor General Agnes Devanadera to review the settlement agreement and thereafter, intervene in the case lodged before the Energy Regulatory Commission (ERC).
Nasecore is opposing the approval of the settlement agreement, which will reduce the P52-billion standing debts of Meralco to Napocor. The group said the agreement is prejudicial to the best interest of the government and electricity consumers.
"We trust that your office will share Nasecore's position and remain steadfast to its mandate of public service, thus grant our request," Nasecore president Pete Ilagan told Devanadera.
Nasecore further pointed out that the ERC has yet to act on the petition despite the lapse of four years since Meralco first raised it on April 15, 2004. The consumer group was an intervener in that case.
It urged the Napocor board to withdraw from said agreement and pursue vigorously the collection of its receivables from Meralco, amounting to P52 billion.
This amount represents principals, interests and surcharges on its failure to purchase contracted power with Napocor based on their 10-year contract for the supply of electricity. (ECV/Sunnex)
