The Philippine Competition Commission (PCC) has approved the acquisition of the Casecnan Hydroelectric Power Plant (CHEPP) by Fresh River Lakes Corp. from the Power Sector Assets and Liabilities Management Corp. (PSALM) and National Irrigation Administration (NIA).
The acquisition would not result in substantial lessening of competition in the relevant markets, PCC said in a statement yesterday.
Fresh River is a subsidiary of Lopez-led First Gen. Corp.
The PCC’s Mergers and Acquisitions Office (MAO) noted competing energy generation companies exert competitive pressure on the parties.
“The volume generated by the Casecnan plant is unlikely to impact the relevant markets; and there are sufficient safeguards in place under the Electric Power Industry Reform Act of 2001 (EPIRA) to ensure that the market remains competitive,” it said.
The 165-megawatt Casecnan plant’s sale aligns with PSALM’s mandate under the EPIRA to privatize all assets and liquidate all financial obligations of state-owned National Power Corp. (NPC).
Fresh River bid $526 million for the facility, located near Pantabangan and Munoz, Nueva Ecija.
The run-of-river hydroelectric power plant diverts water from the Casecnan and Taan Rivers through a 26-kilometer-long tunnel to generate energy.
