The Energy Regulatory Commission was taken to task yesterday for allegedly not fulfilling its mandate to protect consumers, particularly in not allowing the unilateral withdrawal of power contracts.

While SAGIP Partylist Representative Rodante Marcoleta did not name the company he referred to in hitting out strong against the ERC, San Miguel Corp. unit SMC Global Power has recently notified both Meralco and the ERC that it will end its PSA with the electricity distributor by 3 October.

The ERC is holding a public hearing next week on the intent of SMC to abandon the supply deal, a source in the regulatory body said.

"There are companies already applying for readjustment of their electric rates knowing that the contract is fixed," Marcoleta said. He explained that ERC should not even accept petitions to amend PSAs with fixed provisions.

Marinduque Representative Allan Lord Velasco has said his panel will support the Department of Energy and the ERC in attaining their mandates under the Electric Power Industry Reform Act.

Marcoleta, vice chairperson of the House panel, asked ERC about its seeming inability to enforce its mandate of protecting electricity users.

Moreover, he asked big business: "Why do you think the Filipino people would be hostaged on assumptions that were present at the time of the agreement?"

SMC Global Power has filed a petition for an adjustment in the rates in the PSA units of San Miguel Energy Corporation, which run the Sual coal plant and the Ilijan natural gas plant of South Premiere Power Corporation.

"While we are talking about the reliability of supply, amid the problems coming in, initializing or maintaining programs to deliver power in the future provides no certainty," according to Marcoleta.

Marcoleta quoted a Supreme Court ruling that any expense charged to the consumer that in any way is not related to the service and benefit that they derive is inequitable and unjustified.

"How can you even accept applications for readjustment of rates when you know that the contract is fixed? That is the problem," Marcoleta lamented. He cited as example a 10-year contract "for one company."