Rate hike feared over gas shift

Worries have been raised about the possible increase in electricity rates, placing an undue financial burden on consumers over the mega energy that will infuse capital into two San Miguel Global Power gas-fired power plants: the 1,278 megawatts, or MW, Ilijan plant and a new 1,320 MW combined cycle facility expected to begin operations in late 2024.

The Energy Regulatory Commission and the Philippine Competition Commission must take action to protect the interest of consumers, according to the group Power for People Coalition.

ERC chairperson Monalisa Dimalanta confirmed that she will look into the recently announced mega power deal to address concerns about potential monopoly.

The partnership may result to a power distributor becoming a power producer in violation of the Electric Power Industry Reform Act or EPIRA.

80% supply cornered

“In January, the bid for 80 percent of new power requirements were given to two San Miguel Corp. gas plants based on terms that give consumers the short end of the stick,” the group said.

Earlier this week, ERC chairperson Monalisa Dimalanta confirmed that she will look into the recently announced mega power deal to address concerns about potential monopoly and to prevent any negative impact on consumer prices that may result from the transaction.

The local power industry is presently governed by the EPIRA passed during the time of former President Gloria Macapagal-Arroyo.

EPIRA requires that the restructured electricity industry is assured of healthy competition through a level playing field in the competitive retail electricity markets, with oversight by ERC and PCC. It also guarantees consumer choice and penalizes abuse of market power.