Pete Ilagan of Nasecore is calling on the ERC to put information on consumers’ bills about the cost of power from IPPs compared to that from the WESM spot market.
I’m all for transparency. And I believe this information should be made available, easily accessible, and on-line.
But IPP purchases and spot market purchases are purchases of two different products.
IPP purchases, in most cases, have a fixed capacity price over many years – regardless of what happens in the maket. Plus – the output of that IPP is dedicated to the purchaser – it’s guaranteed firm power if the plant is running.
Spot power is "as available". There are no guarantees as to what it’s price will be next month or next year and there’s no guarantee that it will even be available in the amount you want, or at all.
Just because spot prices at a moment in time are less than power from IPPs doesn’t necessariliy say anything about the prudence of the IPP purchases. They are a different products. It could say something, but it’s a complex issue.
Putting this raw information on consumer bills is probably a bad idea.
5 Comments
oh well, what do you expect from pete ilagan? sensible ideas? ha ha. it’s like expecting honesty from politicians.
anyway, my theory is that this latest gimmick of pete is actually coming from npc, which is always looking for every opportunity to malign meralco’s ipps. pete is just being used as a dummy spokesperson.
it’s good that there are people like you who really understand the not-so-simple nature of such price comparison.
thanks a lot for giving your “corrective” opinion. I just hope the erc gets to read it.
have a nice day sir.
I am a residential customer of Meralco, a consumer. Contrary to Mr. Marcelo’s judgement (who I think is from Meralco) of NASECORE’s request from ERC, I believe it is pro-consumer. Obviously, Mr Marcelo is not aware of consumer complaints regarding Meralco’s violation for not sourcing the lowest cost of electricity which is mandated under their franchise and EPIRA.
And if Mr Ilagan is the spokesperson of NPC then why was NASECORE an oppositor to NPC’s petition for rate increase which it even raised to the Court of Appeals? Is this hard to understand for Mr. Marcelo who must be handling Meralco’s PR? KUDOS TO NASECORE.
Noli – no need to “hope.” Here’s a list of emails at the ERC – forward away.
Mia – I agree we need more of what Pete is doing – offering up alternative ideas for discussion and debate, with a consumer focus. Meralco, admittedly, does some of that, but they can’t do it aggressively; they are conflicted.
I think consumer's have the right to know how their goods are priced.
It's a very complicated thing for an ordinary citizen to understand but the point is that no over commercialism is practiced.
I absolutely agree.