Consumer groups urged the Philippine Department of Energy on Sept. 17 to suspend a planned 1,400-megawatt gas auction, warning that rising generation costs could lock households into expensive electricity and prolong dependence on fossil gas.
The Power for People (P4P) Coalition submitted a letter seeking the revocation of the department’s circular on mid-merit gas capacity auctions and the suspension of the auction.
P4P convenor Gerry Arances said fossil gas plants were producing “the most expensive electricity rates today,” driving up monthly power bills.
Arances said half of Meralco’s power supply comes from fossil gas and that its weighted average gas generation rate reached P12.11 per kilowatt-hour in September.
The figure was “the highest recorded for gas so far,” he said, adding that it pushed the distribution utility’s overall generation rate to P9.70 per kWh.
“The longer we depend on fossil gas, the longer consumers will be charged expensive electricity,” said Arances.
The coalition also raised concerns over fuel costs passed on to consumers when gas prices rise because of supply shortages and geopolitical conflicts.
Leody De Guzman, president of Partido Lakas ng Masa, said rising gas prices were passed on to consumers through pass-through costs while generation companies continued to earn profits.
“Sa pagtaas ng presyo ng gas, pinapasa ito sa mga konsyumer bilang pass-through costs,” said De Guzman.
P4P also opposed expanding gas generation in the Visayas and Mindanao, where the coalition said outages and rotational brownouts have affected electricity supply.
Arances said gas projects were still far from operation and offered no guarantee that they could provide the capacity needed to meet growing demand.
“Gas expansion into Visayas and Mindanao would leave consumers vulnerable to expensive electricity driven by volatile price hikes,” said Arances.
He said electricity needs in the two regions should instead be addressed sooner through renewable energy.
The coalition also said the DOE circular provides no clear timeline for reducing dependence on fossil gas.
“The DOE’s circular also does not provide a cap on total capacity, a declining projection over time, or the maximum years for delivering energy using gas,” said Arances.
P4P warned that the policy could divert investment from renewable energy and prolong the country’s reliance on gas-fired generation.
“This Circular and, ultimately, the mid-merit gas auction endanger both consumers’ pockets and the country’s energy transition,” said Arances.
