PMCJ condemns looming privatization of Agus-Pulangi hydropower giant in Mindanao as a total surrender of the state’s vital assets to power oligarchs

Quezon City, Philippines — The Philippine Movement for Climate Justice (PMCJ) strongly condemns the handing over of the Agus-Pulangi hydropower complex (APHC) to private control, as it will strip the state of its capacity to provide a cushion against volatile electricity rates and will not ensure a better power supply to electric consumers.

“This move will have a significant impact on consumers in Mindanao and the country as a whole, as electricity rates will certainly increase in the guise of better service. It has become a trend now that generation from renewable sources is being manipulated to cater to businesses that are also affiliates or subsidiaries of power oligarchs. Such as the case of a geothermal power plant operated by the Lopez Group through its First Gen Corp. (FGen), which was contracted by entities participating in the Green Energy Option Program of the Department of Energy (DOE),” said Edwin Tesaluna, PMCJ senior renewable energy officer.

Tesaluna expounded that the privatization of the power sector, as mandated by the EPIRA Law, failed to achieve its target of providing universal access to a quality, affordable, and reliable electricity supply. For 25 years, privatization has failed to protect consumer interests. 

The industry-wide restructuring of the power sector only had consumers bear the cost of capital investments, recovery, and other charges through higher prices, but did not result in any improvement in service. The country is already suffering from the third-highest electricity prices in Asia, after Singapore and Japan. According to a report by Global Petrol Prices, residential electricity prices in the Philippines are 128.00% of the global average and 253.31% of the Asian average.

DOE Secretary Sharon Garin herself said in reports last August 2025 that their team visited the provincial government and locals of Sorsogon who complained about high electricity prices despite the FGen - Energy Development Corporation (EDC)'s Bacon-Manito (Bacman) geothermal complex being located in their province. There is also evidence of unreliable handling of these private giants, such as the shutdown of units like Bacman’s in 2013.

Since 2010, local communities have been opposing the privatization of APHC, saying it would raise electricity rates in Mindanao, as in Luzon and the Visayas, where most power plants have been privatized.

“The PMCJ, PALAG-Mindanao, Freedom from Debt Coalition, and the communities have long been saying that pushing through with the privatization will only open the way to unabated power rate hikes. The Power Sector Assets and Liabilities Management Corp. (PSALM), that is mandated to manage the privatization of the government's power assets to settle the outstanding financial debts it inherited from the National Power Corp., expressed its optimism that the privatization process of APHC will be completed by 2026, ignoring the communities plea to be properly involved, and their lives and livelihood to be considered,” said Lucita “Yadz” Gonzales, PMCJ Mindanao coordinator.

Gonzales recalled that the campaign against privatization in Mindanao intensified amid the 2010 power crisis, following a long dry spell in 2009. “Back then, many lawmakers and church groups supported the campaign against APHC privatization. We have endured and managed to oppose this for years. This is Mindanao’s goose that is laying the golden eggs, the only remaining asset that provides the government with income from energy generation, aside from keeping the cost of electricity in this part of the country affordable. Now, we are calling to revive and intensify our campaign to fight the privatization that will further burden our people,” Gonzales lamented.

“It is high time that the state reasserts control and operation of this vital industry to protect the consumers and ensure the national economy’s bloodline. The lack of funds to oversee the rehabilitation and upgrading of the APHC is not a valid argument, given the loss of trillions of pesos to rampant corruption. This should not be a matter of privatization, but of prioritization,” ended Tesaluna. ###

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For inquiries, contact:

Sheila Abarra

Senior Media and Communications Officer

Philippine Movement for Climate Justice

mediacommunications@climatejustice.ph

Viber: +639916692356

WhatsApp: +639380898327