Manila: The Philippine Competition Commission (PCC) has greenlit the sale of three power plants owned by the Power Sector Assets and Liabilities Management (PSALM) Corporation.
According to Philippines News Agency, safeguards have been put in place to address competition concerns on the sale of the Caliraya Hydroelectric Power Plant, Botocan Hydropower Plant, and Kalayaan Pumped Storage Power Plant (KPSPP) to Cleanergy 9 Power Inc., which is owned by the Thunder Consortium. This consortium includes Aboitiz Renewables Inc. and Japanese firms Sumitomo Corporation and Electric Power Development Co. Ltd.
In a statement on Friday, the PCC said its clearance for the sale is subject to binding voluntary commitments designed to address competition concerns identified during the merger review, particularly in the ancillary services spot market of the Luzon grid.
During the initial review, PCC cited concerns over the Aboitiz Group's ability and incentive to raise prices unilaterally and limit reserve capacity during the interim period of up to two years, or until the second quarter of 2027, ahead of the implementation of an Energy Regulatory Commission (ERC)-approved tariff for KPSPP under a Department of Energy circular.
To address these, the Aboitiz Group committed to filing a complete tariff application for KPSPP with the ERC within prescribed timelines, including applications for provisional authority or interim relief.
The private entity also made commitments on pricing and capacity allocation in relation to offers in the reserve segment of the Wholesale Electricity Spot Market (WESM) involving the Luzon grid, the PCC said.
It added that to ensure compliance, Aboitiz Group will appoint a senior competition compliance officer within 15 business days of the approval to monitor adherence to the commitments, oversee reporting, and serve as the commission's primary liaison.
"By securing targeted commitments in the Luzon ancillary services market during this transition, PCC is protecting consumers from undue price risks while ensuring reliability and fair competition," PCC Chairperson Michael Aguinaldo said.
