Ka Leody, consumer groups file complaints over high power rates in Mindanao

Presidential candidate Leody de Guzman on Wednesday joined consumer rights groups in filing complaints before the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) regarding the alleged “non-competitive” power deals and high prices of electricity in Mindanao.

Groups under the Power for People Coalition (P4P) filed a 360-page complaint at the DOE’s office in Taguig, questioning the over 70 power supply agreements entered into or applied for by electric cooperatives and distribution utilities in Mindanao.

They claimed such agreements did not go through the Competitive Selection Process (CSP).

“Electric cooperatives and distribution utilities in Mindanao have been violating their obligations of offering least-cost prices to consumers and employing acceptable procurement practices, and both DOE and ERC essentially allowed them to do so,"  Lanao Power Consumers Group Vice President Engr. Dave Tauli said in a statement.

"By only selectively implementing CSP requirements, they doomed power consumers to at least two and a half decades of non-competitive pricing, the usual lifespan of power contracts,” he added.

P4P convenor Gerry Arances claimed that even with the CSP, a number of power companies like those relying on coal and other fuels were still able to price as they wish the electricity they produce and enter agreements with distributors. 

“Consumers in Mindanao reap the bitter fruit of this scheme, especially now as the price of coal and other fossil fuels in the global market continues to rise, and they are forced to shoulder higher generation costs. DOE and ERC must immediately amend the CSP rules and enforce them on all subsisting power contracts,” Arances said.

The P4P urged energy officials to immediately address the “unfair rates” in the island region considering the residents’ low minimum daily wage and the economic crisis brought by the COVID-19 pandemic.

In relation to their call, de Guzman also reiterated his call for fair wages, to lower electricity bills, and eradicate those who are exploiting consumers. 

“Barya ang kinikita ng mga manggagawa ng Mindanao pero ginto ang sinisingil na pambayad sa kuryente. Matinding gutom ang inaabot na at aabutin pa kung hindi kumilos nang may buong pagmamadali and DOE at ERC,” De Guzman said.

(Workers in Mindanao only earn a few but are charged so high for electricity. The people may face extreme hunger if the DOE and ERC do not act on this immediately.)

The labor leader vows to raise the daily minimum wage of workers all over the country to P750 if he wins in the May 2022 elections.

He also previously said his administration would fortify the renewable energy sources such as solar, wind, and hydro, which are cheaper, cleaner, and more labor-intensive. —NB, GMA News