The Philippine Independent Power Producers Association Inc. warned against forcing power generation companies to a “force majeure” as proposed by distribution utilities and electric cooperatives.
PIPPA president and executive director Anne Estorco Montelibano said in a statement that doing so would not only disrupt the power supply chain and was also “tantamount to one sector taking advantage of the other.”
“Using consumer interest as a guise for undermining power supply contracts should not be allowed, as this will affect the ability of generating companies to pay for fuel, operating costs, and even loans, which will render it unable to continue operating its power plants. This can happen quickly, in some cases, within one unpaid billing period,” Montelibano said.
Manila Electric Co. invoked the force majeure provision in its power supply agreements to bring down rates in April, thus prompting consumer group Laban Konsyumer Inc. to call on other distributors and ECs and generators to do the same.
