Consumer group pushes for ‘overhaul’ of electricity auction rules
INQUIRER FILES
MANILA, Philippines — A group of consumer welfare advocates urged the Department of Energy (DOE) to drop current rules on power supply biddings.
The National Association of Electricity Consumers for Reforms (Nasecore) said such rules have only “preserved the dominance” of market leaders, particularly Manila Electric Co. (Meralco).
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Nasecore asked Acting Energy Secretary Sharon Garin to launch a “comprehensive overhaul” of the competitive selection process (CSP). This governs power supply agreements (PSAs) between generators and distributors.
The consumer group said the current rules failed to deliver “meaningful market competition.”
“On the contrary, it has largely preserved the dominance of incumbent and affiliated generation companies, especially in the franchise area of Meralco,” it said.
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“No new independent or reliable power suppliers have been introduced into Meralco’s generation mix in the past decade,” Nasecore told Garin in a letter.
Citing recent decisions from the Energy Regulatory Commission, Nasecore pointed out that Meralco’s PSAs have “steadily risen.”
Sought for comments, Meralco reiterated that it “strictly complies” with government rules related to electricity procurement.
Aside from regularly updating its power supply procurement plan, the Pangilinan-led power distributor stressed that all power deals go through ERC’s assessment, such as regulatory evaluation and public hearings.
These practices, it said, “ensure transparency, fairness, and compliance with established guidelines.”
“We remain fully committed to delivering reliable and least-cost power to our customers while adhering to the legal and regulatory frameworks governing the CSP and the energy sector in general,” Meralco said.
Meralco, the largest power distributor in the country, franchise area that covers Metro Manila, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas, and Quezon.
