NASECORE calls for bidder safeguards in Semirara coal auction
The consumer watchdog also wants domestic supply commitments and pricing transparency in the next contract, with the current agreement expiring in 2027.
The National Association of Electricity Consumers for Reforms (NASECORE) has asked the Philippine Department of Energy (DOE) to make the criteria for the next Semirara coal contract transparent and enforceable, with consumer welfare and energy security guiding the auction.
Under the group's proposed approach, applicants would first undergo checks covering mining expertise, financial resources, safety, environmental protection and operational preparedness. The department would then compare qualified bidders' economic and public benefits, supported by guarantees of performance.
The intervention follows criticism by current operator Semirara Mining and Power Corporation (SMPC), led by the Consunji family. The company said an abrupt revision to auction rules favoured the largest financial bid over bidders' mining experience and technical abilities.
SMPC also objected to a condition requiring it to surrender mining assets to the government if it takes part. It invoked Presidential Decree No. 972, known as the Coal Development Act of 1976, to assert ownership of its equipment.
NASECORE sought an explanation from the DOE of the legal grounds under that decree and the current agreement. It said legitimate ownership rights deserved protection but did not automatically entitle the incumbent to another contract.
The watchdog also requested domestic supply pledges that could be checked and open pricing arrangements. It cautioned that greater government revenue would not necessarily mean cheaper household electricity.
Should a different operator win, NASECORE called for a workable transition with realistic milestones to prevent interruptions before the existing contract expires in 2027. GMA News Online reported that the DOE had not answered its request for comment by publication.
