Higher power rates seen in coal deals

An energy research institution warned consumers of higher power rates as distributors and generating firms push for approval of power supply agreements (PSA) heavily reliant on coal.

The warning was made just three months after the Office of the Ombudsman ordered the suspension of four Energy Regulatory Commission (ERC) commissioners over allegedly anomalous coal PSAs.

The suspension, however, was stopped by the Court of Appeals.

Gerry Arances, executive director of the group Center for Energy, Ecology and Development, said power distributors and generating firms pushed for approval of their coal PSAs despite coal, under seven PSAs pending at ERC, costing more per kilowatt-hour.

In the pending PSAs, power from coal would cost P3.65 per kWh. Wind and solar energy cost P3.50 and P2.99 per kWh.