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July 27, 2019
LKI 29th Press Statement
“Consumer Group reaction on the ERC Motion for Reconsideration of the Supreme Court decision on the power supply selection process and the DOE Green Rate for renewable energy projects, says country and consumers need more power supply at least cost”
In light of the news that the Energy Regulatory Commission (ERC), in collaboration with the Office of the Solicitor General (OSG), had filed a Motion for Reconsideration with the Supreme Court (SC) en banc for a reversal of the ruling invalidating the effectivity and enforcement of at least 105 power supply agreements (PSAs) that had not gone through competitive selection process (CSP) on their supply procurements, consumer group Laban Konsyumer Inc. (LKI) has once again voiced out its call for the urgent need for more power supply.
LKI President Atty. Vic Dimagiba said “for consumers what is important is power supply. Power supply should not be hampered or blocked, especially the supply of the affected electric cooperatives and distribution utilities. Dimagiba added that “turfing “ and “power play” amongst regulators should be set aside , and should not delay once more the competitive selection process.
The group continued by saying “hopefully, because of the MR, generation companies are not deterred from joining CSP, because consumers need supply immediately. With the growing demand for power, the country needs additional power supply and capacity.”
It was reported that at this juncture though, the ERC chief qualified that the supposedly invalidated PSAs are still being enforced – and many of the distribution utilities (DUs) are also now moving forward with their CSPs to comply with the SC decision. And on a more comprehensive sphere, it is also for these power utilities to fend off any future uncertainties in their supply portfolio.
LKI says this motion by the ERC connects directly with the consumer group’s previous call for less barriers blocking the way for power generators. The group once again highlighted the urgent need for more power supply and additional capacity to meet the growing demand.
On Green energy rate
Recent news also came out that DOE is mulling a green rate for renewable energy players. The DOE is planning to set a ceiling price for new renewable energy players to attract investors and promote competition in the sub-sector, but LKI is cautious about this.
With regards to the DOE’s Green Rate, Dimagiba mentioned that “we must focus on what the rate impact will be. DOE should show that there is no subsidy with RE under their proposal. Hopefully this is not an innovation of the Feed in Tariff and FIT Allowance power rate scheme, which the consumer group had consistently opposed. Dimagiba noted that the DOE should conduct public consultation of the proposal. There is already CSP, and that is why CSP is put in place. CSP is there to ensure lower rates so now we are questioning the objective of the green rate.”
For any inquiries or concerns, you may reach LKI President Vic Dimagiba at 0917-812-5546. Visit our updated website at www.labankonsyumer.com and like us on Facebook and Twitter. Send any inquiry to email@example.com