Infrastructure-oriented think tank Infrawatch PH strongly criticized the issuance of a Temporary Restraining Order (TRO) on the competitive selection process (CSP) for the 1000-MW power supply required by the Meralco franchise area.
Infrawatch PH asserted that this judicial intervention disrupts the fair and objective selection proceedings crucial for the power sector's stability and consumer welfare. It noted the complainants' lack of legal standing and the absence of a statutory mandate to prioritize indigenous fuel in power generation, calling for the protection of consumers from corporate power struggles.
Undermining competitive selection
The recent TRO issued by the Taguig City Regional Trial Court halts the CSP initiated by Meralco to secure an additional 1000 megawatts of power supply, a move deemed essential to meet the growing energy demands of its franchise area, which covers Metro Manila and nearby provinces. This disruption poses significant risks to the stability and fairness of the power sector, potentially leading to higher electricity costs and unreliable service for millions of consumers.
"The TRO is a significant setback to the progress we've made in ensuring a transparent and competitive power sector," said Infrawatch PH Convenor Terry Ridon.
"The TRO halts the fair and objective selection of power suppliers, which is crucial for meeting the energy demands of Meralco's vast franchise area. This is not just a legal issue; it's a direct attack on the principles of fairness and efficiency that govern our energy sector," he added.
Infrawatch PH stressed that the CSP process is designed to foster competition among power suppliers, thereby ensuring that the most cost-effective and reliable sources of electricity are selected. This process aligns with the principles outlined in the Electric Power Industry Reform Act (EPIRA) 2001, which aims to reduce electricity rates and promote competition in the power sector.
Questionable standing of complainants
Infrawatch PH also raised concerns about the legitimacy of the entities challenging the CSP process. According to the think tank, the complainants need more qualifications and a direct stake in the power generation industry to contest these proceedings. The group stressed that only those directly involved in power generation and capable of participating in the CSP should have a voice in the matter.
"It is baffling and concerning that entities with no qualifications or direct stake in the power generation industry are being allowed to challenge these proceedings," Ridon stated. "This is a clear overreach and should be dismissed outright. Their interference is unwarranted and detrimental to the interests of consumers who rely on a stable and competitive power market."
The complainants, identified as parties with no experience or capability in power generation, have been criticized for attempting to derail the CSP process for reasons unrelated to the sector's technical and economic realities. Infrawatch PH argued that their involvement could lead to unnecessary delays and increased costs, ultimately burdening consumers.
There is no legal basis for Indigenous fuel mandate
A central argument put forth by the complainants is the supposed necessity to prioritize the use of indigenous fuel in the power sector. Infrawatch PH, however, pointed out that there is no legal basis for such a requirement, especially if it contradicts the EPIRA mandate to provide the least cost of power to consumers.
"There is no provision in our laws that mandates the exclusive use of indigenous fuel for power generation," said Ridon. "What is mandated is the delivery of affordable and reliable electricity to the public. Insisting on indigenous fuel, when it may not be the most cost-effective option, is a disservice to Filipino consumers who deserve the least cost of power as stipulated by EPIRA."
The think tank further explained that while promoting indigenous fuel sources is beneficial for energy security, it should not come at the expense of higher electricity rates. Infrawatch PH underlined that the primary objective should always be to secure the most cost-effective and reliable energy sources, regardless of origin.
Infrawatch PH called for the public to be protected from the corporate power struggles that often play out in the energy sector. It asserted that the primary focus should always be on consumer welfare and the provision of reliable and affordable power rather than the interests of oligarchic factions vying for control.
"Consumers should be spared from the intramurals of contending oligarchies vying for control in the power sector. The power sector exists to serve the people, not vice versa," Ridon asserted.
"Our energy policies and legal frameworks should prioritize the needs and welfare of the public above all else. It's high time we depoliticize the power sector and focus on what truly matters: delivering reliable, affordable, and sustainable energy to every Filipino household," he ended.
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