Quezon City, Philippines — San Juan Resort Restaurant Hotel Association, Inc. (SJRRHASS), and Philippine Movement for Climate Justice (PMCJ)’s member organization Koalisyon Isalbar ti Pintas ti La Union (KIPLU), filed a complaint at the Energy Regulatory Commission (ERC), January 8, 2025, to seek the nullification of the almost a hundred percent power rate increase imposed by La Union Electric Company, Inc. (LUECO).
From Php 3.5530 per kilowatt-hour (kwh), the power rate increased to Php 6.9255 per kwh as announced by LUECO through Public Advisory No. 2024-67. LUECO justified the generation rate hike due to ERC’s failure to act on their Joint Motion for Adjustment of Electricity Fees with Masinloc Power Corporation, Ltd. (MPCL).
According to LUECO, this led to MPCL’s suspension of power supply; and left it with “no other option but to undertake an Emergency Power Supply Agreement (EPSA)” with MPCL. LUECO admitted that the EPSA rate is higher than the present generation price.
“The continuous increase in power rates constantly burdens the people of La Union for years,” Crisanto Palabay of KIPLU said. Palabay emphasized how the plight of the residents against fossil fuels are interconnected, as the current energy industry fails to effectively cater its people in terms of power generation, distribution, and even protection from negative health impacts from these dirty energy resources.
“LUECO and MPCL attempted to maneuver the public opinion with this anomalous track of power contracting. The issue being raised by the consumers is the overwhelming rate hike at almost 100% through a manifestly onerous EPSA. EPSA circumvents relevant procurement laws as it avoids the competitive selection process (CSP). Without CSP, electric consumers are forced to accept LUECO’s imposition hook, line, and sinker without the benefit of public scrutiny, ” PMCJ Luzon Coordinator Erwin Puhawan said.
The complainants seek to nullify the EPSA between LUECO and MPCL, asserting that PSAs should undergo CSP. In a dialogue last December 2024, among LUECO, SJRRHASS, KIPLU, and other consumers, it was revealed that MPCL is the sole bidder.
The complainants also seek the imposition of penalties for the non-conduct of CSP, and refund the overbillings. They hope that the ERC would take action on the complaint, as the Supreme Court recently reiterated that electricity generation is still subject to the commission’s regulation.
According to recent data provided by the Philippine Center for Investigative Journalism, the Philippines has one of the highest electricity prices per kwh in Southeast Asia, second only to Singapore. According to the Department of Energy, coal-fired power plants provide 62 percent of power generation.
“Not only did fossil-fueled power generation cause power rate increases, as it also causes frequent power outages that disrupt consumers’ lives and livelihood. This is only one of the many proofs that fossil fuels are unreliable, costly, and deadly,” Puhawan stressed.