To safeguard the public's welfare, consumer advocates have warned against allowing a landmark partnership between the nation's largest energy companies to result in a surge in electricity prices.

In a statement over the weekend, consumer advocacy group United Filipino Consumers and Commuters, or UFCC, expressed concern that the partnership among San Miguel Global Power Holdings Corp, Meralco PowerGen Corp., and Aboitiz Power Corp. could result in a monopoly if regulators fail to exercise adequate oversight.

UFCC President Rodolfo Javellana Jr. highlighted that the recent consolidation will primarily impact 8 million consumers dependent on these corporations' services. Consequently, they might face the burden of repeated rate increments.

“The public cannot hope for any redress in the future as they can only expect costlier electricity,” he noted.

Javallena also reiterated that checks and balances are important to make sure that the Philippines will continue to be an attractive hub for power-related investments.

Thus, he suggested that Congress should step in and repeal or amend the Electric Power Industry Reform Act of 2001, or EPIRA, to help cut power costs.

The EPIRA passed during the time of former President Gloria Macapagal Arroyo, mandates the Energy Regulatory Commission and Philippine Competition Commission to promote competition, encourage market development, ensure consumer choice, and penalize abuse of market power in the restructured electricity industry.

The law also promotes competition by creating a level playing field, among others, in the competitive retail electricity markets.

Last week, the three industry giants confirmed to join forces to launch the country's first integrated LNG facility in Batangas.

In a $3.3 billion deal, MGen and AboitizPower will infuse capital into two SMGP gas-fired power plants: the 1,278 megawatts, or MW, Ilijan plant and a new 1,320 MW combined cycle facility expected to begin operations in late 2024.

Together with SMGP, they will also invest in nearly 100 percent of the LNG import and regasification terminal owned by Linseed Field Corp.

Additionally, all three companies will acquire Linseed Field Corp.'s LNG import and regasification terminal, which will be used to receive, store, and process LNG fuel for the two power plants.

The deal integrates the local energy sector into the global natural gas supply chain.