TACLOBAN CITY-Consumers, Church groups, and civil society organizations are demanding a refund for what they claim are overpriced and illegal power supply agreements (PSAs) in Eastern Visayas.
These groups argue that the agreements, which drive up electricity rates, were executed without undergoing the required competitive selection process (CSP) mandated by the Supreme Court.
A 2019 Supreme Court ruling nullified PSAs that failed to comply with CSP guidelines. The ruling affects 120 PSAs nationwide, including 11 from distribution utilities in Region 8.
“The deceit of distribution utilities is undeniable. As much as 97.5% of the contracted power capacity in Eastern Visayas comes from illegal contracts, according to the Supreme Court,” said Griderick Alila, Visayas Coordinator of the Center for Energy, Ecology, and Development (CEED).
“These unqualified contracts have been used to justify the region’s high electricity rates, forcing consumers to pay unjustly inflated bills for years,” he added.
Alila further warned that many of these contracts rely on coal-fired power plants, whose prices are subject to extreme volatility, leading to higher costs being passed on to consumers.
“A staggering 90% of the region’s contracted energy comes from expensive coal plants located outside the region. Meanwhile, Region 8 has nearly 100% renewable energy capacity that could provide cheaper power.”
Advocates are also concerned about the environmental and climate impacts of continued reliance on coal in Eastern Visayas, a region highly vulnerable to climate change.
“Consumers are already struggling with rising costs of basic needs, and high electricity prices only add to the burden. Beyond the financial toll, coal energy comes at the cost of lives, as we saw with the devastation of Typhoon Yolanda in 2013,” said Farah Gamalo of the Freedom from Debt Coalition(FDC) – Eastern Visayas.
She highlighted how the region’s coal use grew from 51% in 2013 to 90% by 2023, despite the lessons of Super Typhoon ‘Yolanda’, one of the strongest storms to ever hit the country.
Ronald Abao, program head of Caritas Palo, emphasized the need for accountability. “The deadliest typhoon to hit the world struck Tacloban, yet we continue to rely on dirty energy. Typhoon Yolanda was a harsh lesson, and we must never forget the vulnerability of our people. We must demand accountability from those responsible for these harmful energy choices.”
Alila outlined alternatives to the illegal coal PSAs, suggesting that the region shift toward renewable energy.
“Eastern Visayas has immense potential for clean, affordable renewable energy. By 2025, greener and cheaper energy should be within reach, but only if we start making the necessary changes now.”
The groups urged distribution utilities and generation companies to refund consumers for the excessive costs they have incurred due to these PSAs and transition to more sustainable and affordable energy solutions.
(JOEY A. GABIETA)
