Consumer groups criticized the Energy Regulatory Commission after it approved the pass-on of ₱31.34 billion in fossil fuel-related charges to electricity consumers, a move they said shifts the burden of risky corporate decisions onto the public.
The Power for People Coalition said coal- and gas-fired power plants owned by the San Miguel, Ayala, and Meralco groups sought ERC approval to recover losses linked to higher global fuel prices following Indonesia’s coal export ban in 2021 and Russia’s invasion of Ukraine in 2022.
The applications covered power supply contracts with Meralco that were active during that period.
Gerry Arances, convenor of P4P, said fossil fuel price volatility is a known and longstanding risk that power corporations willingly assumed when they invested in coal and gas facilities.
He argued that this volatility cannot be treated as an unforeseen change in circumstances that justifies passing costs on to consumers.
“Fossil fuel prices are volatile — that’s a fact shown by history,” Arances said. “ERC betrayed consumers by making us pay for trouble we had no hand in creating.”
The coalition warned that recent energy policy shifts, including the lifting of the coal moratorium and the passage of the Gas Industry Development Law, could further expose households to volatile international fuel markets and rising electricity costs.
Labor leader Leody de Guzman, president of Partido Lakas Masa, said the ERC’s decision comes at a time when workers are already struggling to cope with rising prices of basic goods.
“Sino ba dapat ang pinaglilingkuran ng ERC, hindi ba ang mga konsyumer?” de Guzman said. “Walang katarungan ang desisyong ito at dapat na maimbestigahan.”
P4P said the approval of the ₱31 billion pass-on reflects a broader pattern of regulatory decisions that favor corporate interests over public welfare.
The group cited alleged overcharging, cost pass-throughs, disadvantageous contracts, and unmet obligations in the power sector as issues that warrant closer scrutiny.
“That the ERC allowed the Php 31 billion to be shouldered by consumers is indicative of the energy regulator’s favor toward corporations, sidelining public interests,” Arances said.
