A consumer group warned the $3 billion deal between the country’s three biggest power firms to level up the use of natural gas by power plants could be a threat to consumers as this could result in higher electricity rates by monopolizing the liquefied natural gas (LNG) industry.
United Filipino Consumers and Commuters (UFCC) president Rodolfo Javellana Jr. said in a statement the joining of forces by three major companies—San Miguel Global Power Holdings Corp., Meralco PowerGen Corp and Aboitiz Power Corp.—to operate an LNG facility in Batangas province will tighten their grip on the LNG industry.
“What transpired was these oligarch companies consolidated to maintain their monopoly in the power industry,” Javellana said.
“In this consolidation, they aim to maximize the profits for their respective corporations,” he added.
The three companies have not issued a reaction as of press time.
“Even then, reducing electricity rates for the well-being of consumers had never been the priority of these companies,” Javellana said. “Their primary goal as always is to ensure that their earnings are big.”
He said consumers would face higher electricity rates as a result of increased use of imported LNG, which the Batangas facility was designed for, as this fuel was more expensive.
Javellana earlier said high electricity costs threaten to frustrate the economic goals of the Marcos administration.
He said investors would not find the country’s business climate attractive because of high power costs, which are among the most expensive in the world.
He said Congress should step in and repeal or amend the Electric Power Industry Reform Act of 2001, which he described as the root of high power costs.