NEW LNG PLANT SEEN TO PUSH UP ENERGY RATES

A CONSUMER group has warned that the agreement between major energy players to put up the largest liquefied natural gas (LNG) facility in the country could result in high power costs.

Aboitiz Power Corp., Meralco PowerGen Corp. (MGen) and San Miguel Global Power Holdings Corp. (SMGP) recently signed a P184-billion partnership to build an LNG facility in Batangas.

While the landmark deal was touted as a major leap forward for a cleaner energy future, United Filipino Consumers and Commuters (UFCC) described it as a “threat to consumers.”

UFCC President Rodolfo Javellana Jr. said the new venture will raise electricity rates while maximizing the profits of the top energy companies that will eventually monopolize the LNG industry.

“What transpired was these oligarch companies consolidated to maintain their monopoly in the power industry,” Javellana said in a statement issued over the weekend.

“In this consolidation, they aim to maximize the profits for their respective corporations,” he added.

Javellana said the consolidation effectively ensured that an estimated 8 million consumers, relying on the services of these corporations, would bear the brunt of continuous power rate increases.

Consumers would also face higher electricity charges as a result of the increased use of LNG, which is more expensive than other fuels.

Javellana also scored the government for not taking into consideration the welfare of the consumers.

“This was further worsened by the regulatory capture of government agencies that should have been acting as check and balance and defending Filipino consumers held hostage by constant price hikes,” Javellana said.

“The public cannot hope for any redress in the future as they can only expect costlier electricity,” he said.

Javellana pointed out that the country’s high power rates, which are among the most expensive in the world, could “frustrate” the economic goals of the Marcos administration.

He urged Congress to repeal or amend the Epira law, which he said is the root of high power costs.