Remaining vigilant in the face of price shocks and crisis

October 21, 2020

Over the course of what has now been over half a year, the Philippines as a whole has grappled with the public health and economic crisis brought about by the pandemic crisis caused by the Virus from Wuhan. With rising unemployment and economic insecurity, consumers have turned to various digital-based solutions, all of which rely on a core public utility: power.

It is disturbing, therefore, to observe that there has been an unexpected surge of electricity prices, caused mainly by high charges in the Wholesale Electricity Spot Market, or WESM. This is a clear and pressing threat to the consuming public and to the quality of life of Filipinos at large.

From the facts presented to media, these unprecedented spikes in price were caused by unscheduled power plant outages sometime in early September of this year and compounded by a restriction of gas output at the Malampaya field.

Such market shocks and irregularities are inevitably passed on to the consumer through rate hikes that will be reflected in the electric bills in October.

In the wake of the pandemic crisis, the Filipino consuming public faces a host of multifaceted issues. Many have had their livelihood threatened by unprecedented layoffs due to slumps in the national economy and closures of businesses as a result of large-scale lockdowns. OFW remittances are threatened as well. On top of this, there are the ever-present costs of food, education, and housing.

Throughout all of this, Filipinos have demonstrated determination and resilience by adopting ingenious solutions for added income through e-commerce and work-from-home setups. However, they should not be made to shoulder the burden of price spikes caused by mismanagement and human error.

We at CitizenWatch Philippines call on regulatory bodies and the national government to investigate the issue of spot price increases despite what has been proven to be sufficient generation capacity. In particular, we call on the Energy Regulatory Commission to fulfill its mandate and investigate possible deliberate action on the part of generation companies to make a profit while the public eye was focused on addressing the pandemic.

Moving forward, we enjoin all concerned citizens and consumers to remain vigilant and protect their rights as members of the consuming public!

Atty. Tim Abejo

Co-Convenor, CitizenWatch Philippines