A review of these contracts is being conducted by an oversight committee initiated by Meralco management.
"These contracts have been thoroughly reviewed by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) prior to its actual implementation and as a matter of fact Nasecore had all the opportunity to present their position before the regulatory body," Meralco vice president and director for corporate communications Elpi Cuna Jr. said.
Cuna said the committee created by the Meralco board which includes representatives from the government is an independent body. "This committee will conduct its own inquiry into these contracts. None of the committee members are executives of Meralco," he said.
The committee is composed of Landbank president and CEO Margarito Teves, Union Fenoza SA’s Emilio Vicens and former Agriculture Secretary Carlos Dominguez.
The committee has been given until June this year to come up with its findings and finalize the report.
"We understand the concern raised by Mr. Ilagan, however, this matter has already been acted upon by our board of directors whose members have a track record of independence and integrity. I believe this is already enough assurance that there will be no coverup in the inquiry," Cuna said.
Consumers and civil society groups are urging the government to allow them to be part of the oversight committee that will review the contracts of Meralco with its IPPs.
"That way, the public will somehow be assured that there is no cover-up in the investigation," he said. "We hope though that Meralco is not just trying to pull our leg by forming this committee. We hope that they are not merely trying to impress upon the consuming public that they are sensitive to public opinion and that they are doing something to lessen the burden caused by the notorious purchased power adjustments (PPA)," National Association of Electric Consumers for Reforms (Nasecore) president Pete Ilagan said.
The Nasecore president urged the government representatives in the Meralco board to take stronger roles in running the utility firm and always put the welfare of the consumers at the forefront.
"Being the majority holder of Meralco, the government should stand for its stake and not allow the Lopez group – which has smaller stake – to run the company like a wholly-owned family business," Ilagan said.