20 October 2021
COMMIT TO UPHOLD ELECTRICITY CONSUMER WELFARE BY REJECTING THE UNSOLICITED PROPOSAL MECHANISM IN THE ENERGY SECTOR
We, the undersigned, representing consumers, business owners and development workers, collectively agree that the Competitive Selection Process (CSP) needs to be defended and strengthened in the procurement of electricity supply, as key in economic recovery and consumer welfare.
The DOE-proposed Unsolicited Proposal mechanism will only weaken the CSP and will render consumers at the mercy of greedy corporate interests, as it will result in rising electricity rates, as the generation company which first submits the proposal, also referred to as the “proponent” can manipulate and dictate the market prices.
It is essential to highlight that several corporate entities own both generation and distribution utility companies with cross-ownership. DOE’s move could open possibilities to tailor-fit terms or enable pre-arranged victory for their subsidiary and affiliate companies under the “original proponent status”.
A 2014 World Bank study on Unsolicited Proposals showed that projects initiated under unsolicited proposals faced many challenges, such as misuse of public resources, corruption, fraud, poor quality of resulting infrastructure, and lack of competition for markets resulting in natural monopolies.
Consequently, we ask the DOE, who is pressuring you to revise the competitive selection process?
The priority right now is to strengthen the energy sector to prevent brownouts and energy outages nationwide and do so at the least cost to consumers. Why are you stampeding in the wrong direction of low-level transparency that will weaken competition and promote corruption by allowing opportunities for fixing?
We implore Committee on Energy to take the side of electricity consumers and stop DOE’s efforts to curtail free competition in the country’s energy sector and we call on the House Committee on Energy to urgently:
- Hear House Resolution 1874 authored by Anak Mindanao Party-list Representative Amihilda Sangcopan, and
- Compel the DOE to cease efforts to come out with any memorandum circular to amend the CSP and instead exhaustively discuss the need for an unsolicited proposal mechanism in the energy sector
We, consumers, have suffered long enough with economic and political scandals happening one after the other.
Our country’s electricity cost is still one of the highest in Asia, and we believe that strengthening the competitive selection process instead of weakening it with the intended unsolicited proposal mechanism will decrease the cost of electricity in the long term.
Jaydar Medrozo Brycan Dayao
Lead Campaigner Host
POWER The Young Leader Podcast
Jerry Cocabo Yao Rudyard Balmedilla
Entrepreneur, Academician Entrepreneur
Karlo Hain Ismael Abaya
Entrepreneur Founder/President, One Halal Association of the Philippines
Producer, Global Pinas TV
Joseph Orinion Don Varr Aqui
JCI Makati JCI Baguio
Mark Jacinto Elmar Nabisa
Curator, OSYAF Teacher
Russel Steve Sebio Valred Olsim
Elevate Benguet Movement La Trinidad Tourism Advocates
Consumer Welfare Advocate
Oroquieta City, Misamis Occidental