Bishops take on SMC
Despite the volatile fossil fuel prices, SMC had lined up several power projects using liquefied natural gas that religious leaders are calling out.
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Daily TribuneDespite the volatile fossil fuel prices, SMC had lined up several power projects using liquefied natural gas that religious leaders are calling out.
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The snowballing campaign to make San Miguel Corp. accountable for putting the profit motive ahead of the general welfare now involves the Church as prelates made their voices heard primarily on the dependence of the corporate titan on fossil fuel in its energy sector development.
The Energy Regulatory Commission is expected to decide on a petition before the 4 October threat of the conglomerate's energy arm SMC Global Power to withdraw from power supply agreements that would deprive Luzon of 1 gigawatt of electricity supply from its Ilijan and Sual power plants.
SMC Global owner has warned that its arbitrary pullout will cost consumers who have to pay higher monthly bills.
To head off its retreat, the ERC is being arm twisted to grant a "temporary" P4.80 per kilowatt hour increase in power rates or a P1,000 added tag to an average household consuming 200 kWh a month.
Consumer groups said the SC subsidiary bid for PSAs under a straight pricing scheme that does not allow pass-through provisions on higher fuel costs which SMC now wanted to be amended through an ERC order.
Despite the volatile fossil fuel prices, SMC had lined up several power projects using liquefied natural gas that religious leaders are calling out.
With over 14 GW capacity currently proposed, SMC leads the expansion of fossil gas in the Philippines.
Bishop Jose Colin Bagaforo of the Diocese of Kidapawan, Bishop Gerardo Alminaza of the Diocese of San Carlos, Bishop Guillermo Afable of the Diocese of Digos, and Bishop Victor Ocampo of the Diocese of Gumaca along with the Social Action Center and Ecology Ministry directors from the Jaro, Dumaguete, Caceres, Lucena, Gumaca, Marble, Bacolod, Novaliches, Tandag, San Carlos, Surigao, Virac, and Taytay urged SMC to be more socially responsive.
The message was delivered just as consumers and communities in various sites across the country including Batangas, Cebu, Mandaluyong, Negros, Quezon and Leyte held actions calling out SMC for pushing for fossil gas, whose prices in the global market are extremely volatile, while also making moves to hike prices of electricity at a time when Filipinos already reel from a cost of living crisis and economic challenges.
The groups bannered the actions as part of the recent "Day of Action Against High Prices of Electricity."
The fossil gas dependence also showed the company's pretenses when it announced its intention to move out of coal plant development.
Sual coal plant also obtained its supply deal with Meralco through straight pricing which SMC Global owner now wanted to have a drastic adjustment.
The portion of the price adjustment that SMC seeks for the coal plant is P4 per kilowatt hour.
SMC claims to have piled up losses of P15 billion as a result of the volatile prices of coal and the supply restrictions from the Malampaya natural gas.
SMC took a great risk in bidding low for the supply contracts to elbow out competitors but later on found that its offers were unsustainable.
Oppositors to the SMC Global Power petition with ERC said that the energy company knew the risks when it made its offer and thus can't invoke "change in circumstances" in its plea with ERC for a PSA price adjustment.
It is a bad SMC boardroom call, the consequences of which consumers should not be made to bear.
