By Atty. Egay Uy
PALAG NA!, a group of electric power consumers and climate justice and environment movements, asserts that it is illegal for electric distribution utilities to collect payment from their respective customers for the cost of power supplies contracted under power supply agreements that did not undergo competitive bidding.
Engr. Dave Tauli, former vice president for engineering of CEPALCO and the convenor of PALAG NA!, states that “it is the responsibility of the Energy Regulatory Commission to compel distribution utilities to comply with rulings and orders of the Supreme Court.”
The Energy Regulatory Commission is mandated by Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) to ensure compliance with the law by the participants in the electric power industry in the Philippines, particularly distribution utilities that were granted franchises, hence monopoly in supplying power in their franchise areas.
PALAG NA! estimates that by carrying out competitive public bidding, "the average costs of electricity will decrease from seven pesos to five pesos or less per kilowatt-hour. Aside from this price reduction, it also will result in the displacement of power supply from fossil-fueled power plants with power supply from renewable energy power plants." Of course, the undisputable bottom line is end-users of electricity reap the benefits of rate reduction.
PALAG NA! says that "the South Cotabato II Electric Cooperative (SOCOTECO-2) serving the southern parts of South Cotabato, and headquartered in General Santos City, is exceptional among all distribution utility companies in Mindanao." It has reportedly completely complied with the Supreme Court decision that made it unlawful for distribution utilities to pass on to their consumers the cost power supply agreements for which no competitive public bidding was carried out.
Several power supply agreements that did not go through competitive bidding were nullified by the Supreme Court in its May 2019 decision, PALAG NA! has reported.
According to Engr. Tauli, PALAG NA! will file legal actions to nullify other power supply agreements that although not covered by the Supreme Court decision, did not go through the required competitive selection process. The group reports that many electric consumers have identified more than a hundred agreements that were entered into without public bidding.
While the power play continues, PALAG NA! is apparently moving heaven and earth to protect the rights of electricity end-users and to prevent the possible commission of abuses by power industry players.
Thank you, PALAG NA! Thank you, Engr. Dave Tauli.
