Fresh River cleared to acquire Casecnan Power Plant—PCC

Fresh River Lakes Corporation can now freely acquire Casecnan Hydroelectric Power Plant from state-owned Power Sector Assets and Liabilities Management Corporation and National Irrigation Administration, as the Philippine Competition Commission has seen that the transaction would not result in substantial lessening of competition in the relevant markets.

The PCC decision was made on 25 January 2024 and was just made known on Tuesday, 06 February 2024.

According to the PCC, its Mergers and Acquisitions Office on 15 December 2023 opened a Phase 1 review into the deal, which assessed potential antitrust concerns that may arise from the transaction.

Subsequently, the PCC-MAO ruled that competing energy generation companies exert competitive pressure on the parties; the volume generated by the Casecnan Plant is unlikely to impact the relevant markets; and there are sufficient safeguards in place under the Electric Power Industry Reform Act of 2001 or EPIRA to ensure that the market remains competitive.

The Casecnan Plant’s sale aligns with PSALM’s mandate under the EPIRA to privatize all assets and liquidate all financial obligations of the state-owned National Power Corporation.

To recall, Fresh River secured the 165-megawatt Casecnan Plant, with the highest bid of $526 million.

The facility, located near Pantabangan and Munoz, Nueva Ecija, is a run-of-river hydroelectric power plant that diverts water from the Casecnan and Taan Rivers through a 26-kilometer-long tunnel to generate energy.

The PCC is mandated under the Philippine Competition Act to review mergers and acquisitions to ensure that these deals will not substantially lessen competition in the relevant markets and harm consumer welfare.