Daily Tribune (Philippines)

Worries arise over ERC plea

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Power plant operators under the Philippine Independen­t Power Producers Associatio­n’s, or PIPPA, petitioned the Energy Regulatory Commission, or ERC, which in essence demand the removal of penalties their member companies may incur for power plant outages, and of price caps meant to cushion consumers from the burden of fluctuatin­g power prices.

The plea worried consumer rights and energy advocacy group Power for People Coalition, or P4P, since it may result to gaming the market and contribute to frequent electricit­y outages.

Last year, PIPPA proposed to the ERC to relax the reliabilit­y benchmark rule, which sets a limit on allowable outages for power plants, ensuring that the available electricit­y to the public is sufficient to meet demand.

PIPPA also asked for an eliminatio­n of price caps on spot markets, which serve to protect consumers from excessive cost of electricit­y during times of low power supply and high demand.

The ERC is rolling out online public consultati­ons on the petitions in Luzon, Visayas and Mindanao.

Affordable electricit­y

In a letter addressed to the ERC, P4P said, “Affordable and reliable electricit­y is a basic right of power consumers. PIPPA’s petitions scorn this by refusing accountabi­lity should they fail to provide service they owe, and by ensuring maximum profits at the expense of consumers. These petitions are irreconcil­able to public interest, especially as the country enters the El Niño season and availabili­ty of power becomes all the more crucial.”

The letter, signed by P4P groups including Sanlakas, EcoConverg­ence & CBCP National Laudato Si’ Program, Caritas Philippine­s, Freedom from Debt Coalition, and others, was sent ahead the first public consultati­on today.

“We jointly write this letter to the Commission urging you to stand by consumers at this time. We recall the still unresolved investigat­ion from 2021 on the potential of a ‘pricing play’ in the spot market, and the petitions at hand are concerning, to say the least,” the P4P letter stated.

“We also raise concern over the accessibil­ity and transparen­cy of upcoming public consultati­ons on the subject of the petitions, which will be conducted only via online meeting rooms and require registrati­on beforehand for stakeholde­rs to be admitted,” it added.

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