‘Govt must junk PIPPA petitions’
ENERGY consumer advocacy group Power for People Coalition (P4P) urged the energy regulatory Commission (erc) to deny the petitions filed by the Philippine independent Power Producers Association (PIPPA) which sought the removal of penalties imposed against power firms.
PIPPA has asked the erc to relax the reliability benchmark rule, which sets a limit on allowable outages for power plants. it also asked for the removal of current 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 petitions “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,” said P4P.
The erc is rolling out online public consultations on the petitions in Luzon, Visayas, and mindanao.
“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,” P4P said.
The letter was signed by P4P groups including Sanlakas, eco-convergence & CBCP National Laudato Si’ Program, Caritas Philippines, and the Freedom from Debt Coalition.
“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.
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,” P4P added.
W hen sought for comment, PIPPA President Anne estorco montelibano said the group’s petitions on both the secondary price cap and reliability standards are meant to address the need for the energy sector to adapt to the changing times. Also, she added, these are outdated and do not reflect the current situation, especially on fuel prices.
“We are cognizant of the mandate of our government for more investments, and these petitions are for the consideration of the erc which will in the long run produce reliable, stable, and cost efficient energy.
Through our proposal, we encourage all our stakeholders to understand the business of power generation and the requirements our generators face to maintain our plants to ensure reliable power,” montelibano said via SMS.
PIPPA is a group of 28 generator members with 18,132-megawatt grid installed capacity. it has been pushing for the removal of significant barriers to entry for power generators to make electricity rates more competitive in the country, added montelibano.