Senator Erwin Tulfo has urged the Energy Regulatory Commission (ERC) to investigate why coal prices in the Wholesale Electricity Spot Market (WESM) are nearly matching those of oil-based fuel, raising concerns over the potential impact on electricity costs.
During the Senate Committee on Energy hearing on Thursday, October 15, Tulfo questioned why coal-fired power plants appeared to be matching the prices of plants using more expensive fuels, despite coal’s historically lower generation costs.
“Bakit po aabot? Ang balita po namin kasi nakakarating po sa committee, hinahabol po ng coal, yung mga power generators diyan sa WESM, itong presyo ng bunker fuel o ng fuel po. Hinahabol po ng coal para pumantay sila. Which that should not be the case, di po ba?” Tulfo said.
The senator cited information received by the committee from consumers, including reports from individuals with relatives working in the electricity market, suggesting that coal-generated electricity prices were increasing alongside fuel prices.
Tulfo said coal’s estimated landed cost had previously been around ₱3 per kilowatt-hour but had reportedly risen to approximately ₱6 per kilowatt-hour. He questioned why coal-generated electricity was becoming more expensive and called on the ERC to ensure that pricing practices were properly monitored.
“Dapat po hindi. Dapat po ’yun ang nababantayan ng ERC. Pero parang nakakalusot po ito,” he said.
While acknowledging the ongoing energy crisis and pressures affecting liquefied natural gas (LNG) and petroleum prices, Tulfo stressed that coal-fired power plants should continue to provide a comparatively cheaper source of electricity.
“Pero the coal, bakit pumapantay na siya pagdating sa WESM? Dapat hindi po eh. Dapat mas mura pa rin, mura yung electricity ng coal-powered fire plant. Di ba?” he added.
During the hearing, the ERC explained that rising coal prices were partly driven by imported coal costs and the depreciation of the Philippine peso against the US dollar.
The discussion comes amid concerns over increasing electricity costs and the need to ensure that power generation prices reflect prevailing fuel costs and market conditions. Tulfo called for closer regulatory scrutiny to determine why coal prices were approaching those of oil-based generation in the WESM.
