Renewable player wants 'automatic pass through' removed in power supply deals

ABS-CBN News

<figure class="op-interactive"><iframe src="https://www.youtube.com/embed/Bjln1xJTUM0?enablejsapi=1"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><p>MANILA - Power consumers should not automatically be made to shoulder the cost of rising fuel prices in the world market, a renewable energy player said on Wednesday. </p><p>Following the Supreme Court ruling <a href="https://news.abs-cbn.com/business/05/06/19/supreme-court-power-regulator-cant-move-bidding-rule-effectivity">chastising</a> the Energy Regulatory Commission (ERC) for postponing competitive bidding for power supply agreements (PSAs), Allotrope Partners said ERC should next look at removing the &quot;automatic pass through&quot; provisions of these power deals.</p><p>Marlon Apanada, Philippine managing director for Allotrope Partners, said removing these provisions would level the playing field for renewable energy players. </p><p>Apanada said automatic pass through means that whenever the cost of fuel, such as coal, goes up in the world market, power producers and distributors could simply pass this higher cost on to consumers instead of looking for cheaper alternative power sources. </p><p>&quot;Right now no one is incentivized to procure diligently and efficiently because all fuel cost and all foreign exchange fluctuations are passed through to the consumers,&quot; Apanada said in an interview with ANC. </p><p>Apanada said utility-scale solar power plants could now produce power at P3 per kilowatt-hour (kWh) which is competitive with coal plants that output power at P5/kWh. </p><p>But he added that renewables, which don&#x27;t consume any fuel, could better compete with fossil fuel technologies if automatic pass through provisions are removed. </p><p>&quot;That would be the next step for us to have a level playing field,&quot; he said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/05/25/18/solon-hits-meralco-sweetheart-deals-firm-says-agreements-in-good-faith">READ: Solon hits Meralco &#x27;sweetheart deals&#x27;; firm says agreements in &#x27;good faith&#x27;</a></li>	<li><a href="https://news.abs-cbn.com/video/business/03/13/17/lawmakers-grill-erc-officials-on-alleged-midnight-deals-of-meralco">Lawmakers grill ERC officials on alleged &#x27;midnight&#x27; deals of Meralco</a></li></ul>

<p>Renewable energy player bats for removal of 'automatic pass through' in power supply agreements</p>

Renewable energy player bats for removal of 'automatic pass through' in power supply agreements

Renewable player wants 'automatic pass through' removed in power supply deals | ABS-CBN

Halalan 2025

Entertainment

News

Metro.Style

Lifestyle

Sports

More

Traffic

Horoscope

Business

Renewable player wants 'automatic pass through' removed in power supply deals

Renewable player wants 'automatic pass through' removed in power supply deals

ABS-CBN News

Published May 08, 2019 08:32 PM PHT

Read More:

renewable energy

solar

automatic pass through

Allotrope Partners

power supply agreements

ANC

ANC Top

ANC Exclusives

Market Edge

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.