CONSUMER GROUP Power for People Coalition (P4P) has filed petitions with the Energy Regulatory Commission (ERC) seeking to reject Manila Electric Co.’s (Meralco) power supply contracts with generation companies that procure from fuel plants.
“We are asking the ERC to reject these contracts as part of their responsibility of protecting the public. Otherwise, they will condemn a new generation of consumers to 15 years or more of expensive power,” P4P Convenor Gerry C. Arances said in a statement on Monday.
The consumer group filed petitions with the ERC against the power supply contracts secured by Meralco through competitive selection processes (CSPs) with generation companies including Excellent Energy Resources, Inc. (EERI), GNPower Dinginin Ltd. Co. (GNPD), South Premiere Power Corp. (SPPC), and Mariveles Power Generation Corp. (MPGC).
In January, Meralco announced that it had secured the lowest bids for the 1,800-megawatt (MW) supply from GNPD, MPGC, and EERI, with offers of P6.8580 per kilowatt-hour (kWh) for 300 MW, P6.9971 per kWh for 300 MW, and P7.1094 per kWh for 1,200 MW, respectively.
Meanwhile, SPPC was awarded the 1,200-MW baseload contract after submitting the lowest bid of P7.0718 per kWh.
EERI, SPPC, and MPGC are subsidiaries of San Miguel Global Power Holdings Corp., while GNPD operates under the private limited partnership of Aboitiz Power Corp.’s Therma Power, Inc., AC Energy & Infrastructure Corp., and Power Partners Ltd. Co.
“The terms of these power contracts are unfavorable to consumers and small businesses. Everyone loses except big power players: Meralco, San Miguel, and Aboitiz, who are leaving consumers no choice but to pay for more expensive electricity while their profits are soaring,” Mr. Arances said.
P4P said that the contracts allow the power plants to “automatically” pass on fuel costs to consumers.
Sought for comment, Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said the company has committed to sourcing the least-cost available supply through, among others, the conduct of a transparent bidding process.
“We strictly observe and follow the requirements and standards set by the government, which includes securing prior approval from the Department of Energy of our Power Supply Procurement Plan and the corresponding Terms of Reference (TOR) of the CSPs,” he said.
Mr. Zaldarriaga said that the TORs considered suggestions from the ERC chairperson before they were published.
“The CSPs involve an open and competitive process with the ultimate goal to secure the lowest bid from qualified generation companies, with no preferential treatment. Thus, the allegations that contracts emanating from CSPs are anti-competitive have no basis,” he said.
“We would like to assure our customers that all power supply contracts resulting from our CSPs undergo a strict review and approval from the ERC before being implemented to ensure that rates are fair and reasonable,” Mr. Zaldarriaga said.
ERC Chairperson and Chief Executive Officer Monalisa C, Dimalanta said the commission is still evaluating the power contracts and “the points raised by consumer groups will all be taken into consideration.”
“We encourage consumers to also participate in the formal process — as intervenors or oppositors in the proceedings — so we can ventilate all issues,” she said in a Viber message.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
