"During our last meeting with the JCPC, we have agreed to meet with them once a month to avoid some misunderstandings particularly on the privatization of the National Power Corp. (Napocor) assets," Transco president Alan T. Ortiz told reporters over the weekend.
Ortiz said they have also settled amicably the issue of submission of necessary privatization documents to the lawmakers.
Ortiz pointed out JCPC does not have to approve the privatization moves of PSALM but will be "merely informed’ of the updates on the sale of the Napocor assets.
Rep. Alipio "Tikbong" Badelles, chairman of the House Committee on Energy and JCPC co-chairman, earlier criticized the Justice Department’s opinion which allows PSALM the authority to amend or revise the existing Transco privatization plan without securing the endorsement of the JCPC.
According to Badelles, the DOJ opinion is equivalent to a license for PSALM to violate the Electric Power Industry Reform Act (EPIRA) of 2001.
Badelles said the said law tasked PSALM to submit a privatization plan for the endorsement of the JCPC and approval of the President.
"Be it remembered that PSALM is privatizing Transco pursuant to the privatization plan previously endorsed by JCPC and approved by the President," the lawmaker said.
He also said the conditions and terms stipulated in the privatization plan cannot just be revised or amended by PSALM without securing the endorsement of JCPC.
"To allow PSALM such power is tantamount to imposing its own judgment as against that of the JCPC," he said.
Among the critical conditions in the plan were provisions which must be observed by PSALM such as, privatization by concession contract, observance of open competitive bidding, constitutional restrictions on foreign ownership on public utilities, and technical and financial qualifications of the concessionaire.
He said that if the intention of the law is to allow PSALM complete flexibility in undertaking the privatization of Transco and Napocor, this should have been clearly stated in the EPIRA but instead, the law speaks of the need to secure the endorsement of the JCPC and for the JCPC to set the guidelines and overall framework in ensuring the proper implementation of the privatization program.