Coal prices continue to surge. The rising coal price raises the fuel cost of coal-fired power plants. Notable publicly listed companies operating base-load coal plants are Aboitiz Power Corporation (AP) and AC Energy Corporation (ACEN). Semirara Mining and Power Corporation (SCC) is predominantly a coal miner with coal-fired power plants.
ACEN operates the base load coal-fired power plant, South Luzon Thermal Energy Corporation (SLTEC). AP operates several coal-fired power plants all through-out the country and is one of the country’s biggest coal plant operators.
The rising coal prices increases the fuel costs of coal plant operators. AP and ACEN’s SLTEC may not be able to pass-on their surging fuel costs to the public/consumers.
The Filipino consumers are already starting to complain of high-power costs and increasing consumer goods prices. With the election season fast approaching, for sure the high electricity costs will become an issue. The high-electricity costs might attract the scrutiny of politicians, who will be eager to score points from the public. Regulators might be pressured to abate the increasing electricity costs in the country and coal-plant operators might not be able to pass-on the ever-increasing fuel costs to the consumers.
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