Consumers, church groups, and civil society organizations on Wednesday called for a refund from ‘illegal power supply agreements’ that promote expensive energy in the region.

In a 2019 decision, the Supreme Court nullified power supply agreements (PSA) that failed to undergo a Competitive Selection Process (CSP). The decision affects 120 PSAs across the country, 11 of which are from distribution utilities in Region 8. 

“The deceit of distribution utilities right under consumers’ noses cannot be denied. At 97.5%, almost all of the contracted capacity in Eastern Visayas is, as declared by our highest court, from illegal contracts. They are unqualified to be the basis of the high electricity rates consumers have been forced to pay for years,” explained Griderick Alila, Visayas Coordinator of think-tank Center for Energy, Ecology, and Development (CEED).

The consequences of the continued implementation of these contracts are doubly alarming, according to Alila, as the majority of the electricity they produce is from coal-fired power plants whose prices are extremely vulnerable to volatilities – higher costs of which are passed on to consumers.

“Distribution utilities are disregarding the plight of their consumers. 90% of the region’s contracted energy supply is composed of expensive energy from coal plants outside the region. With these contracts, consumers are paying much higher electricity rates than in Metro Manila. Meanwhile, they fail to benefit from the nearly 100% renewable energy installed within the region itself that is relatively much cheaper,” Alila added.

Advocates also stressed that continued use of coal, which triggers negative environmental impacts and contributes to the worsening of the climate crisis, is incompatible with highly climate-vulnerable Eastern Visayas.

“Distribution utilities and the generation companies they contracted owe electric consumers of Region 8 a refund after paying for expensive and illegal power supply without their knowledge. Consumers are already having difficulties from rising costs of basic needs, and even then we are forced to shoulder high electricity costs. Coal also costs not only our pockets but also our lives. Typhoon Yolanda in 2013 and the many more catastrophes that hit us before and after it are a reminder of just how vulnerable the region is to impacts of climate change,“ said Farah Gamalo of Freedom from Debt Coalition – Eastern Visayas.

Typhoon ‘Haiyan, locally known as Super Typhoon ‘Yolanda’, is one of the strongest typhoons that hit the country, making its 11th anniversary this November. The groups raised concern that instead of learning from Yolanda, the region massively expanded its use of coal in the last decade – from a share of 51% in 2013, to 90% by 2023.

“The fact that the deadliest typhoon to have ever hit the world had landed in Tacloban should have been enough reason to stop dependence on dirty energy. Typhoon Yolanda was a painful lesson for everyone, and should continue to be a reminder for the years to come,” Program Head of Caritas Palo Ronald Abao said.

“Our most vulnerable brothers and sisters most feel this burden. We should not leave them behind in this dire climate situation that we all face. We have to do our part by demanding accountability to protect our people and our immediate environment,” he added. 

Alila also presented other alternative solutions for the illegal coal PSAs, raising the ‘prospects of greener and cheaper energy’ for 2025.

“DUs in Eastern Visayas should bank on the region’s immense potential for clean, affordable renewable energy,” added Alila.