Freedom from Debt Coalition (FDC), represented by Wilson Fortaleza, said that with the passage of the Electric Power Industry Act (EPIRA or Republic Act No. 9136), it hastened corporate control over the whole power system and results in “sweetheart deals” between energy distribution companies and power generation companies. This is because the law allows power distribution companies to own power generating companies.
The example he pointed out was that between Aboitiz subsidiaries Davao Light and Hedcor. Davao Light owns electricity distribution rights in Davao City, while Hedcor is into power generation.
The Lopez Group, which operates Luzon based energy distribution firm Meralco and a sling of power generation companies had been accused recently of keeping the prices of electricity up by favorably purchasing high priced electricity from their own power plants despite an electricity spot market existing. These “sweet heart” type of deals is what FDC is warning that could happen between Davao Light and Hedcor.
[source]
Category: Hydro, Aboitiz
