PCC Approves Fresh River's Acquisition Of Casecnan Power Plant

The Philippine Competition Commission (PCC) has given the green light to Fresh River Lakes Corporation's acquisition of the Casecnan Hydroelectric Power Plant (CHEPP) in Nueva Ecija from state-owned entities Power Sector Assets and Liabilities Management Corporation (PSALM) and National Irrigation Administration (NIA).

The sale of the Casecnan Plant aligns with PSALM's mandate to privatize assets and settle financial obligations of the state-owned National Power Corporation (NPC) under the EPIRA. I Photo: Cooperativa Muratori & Cementisti – C.M.C. di Ravenna

Under the Philippine Competition Act (PCA), the PCC is tasked with reviewing mergers and acquisitions to ensure they do not significantly reduce competition in relevant markets and harm consumer welfare.

Following a Phase 1 review initiated on December 15, 2023, the PCC determined that Fresh River's acquisition of the Casecnan Plant, a subsidiary of Lopez-led First Gen. Corp, would not lead to a substantial decrease in competition in relevant markets.

The review found that other energy generation companies exert competitive pressure, the volume generated by the plant is unlikely to impact markets significantly, and safeguards under the Electric Power Industry Reform Act of 2001 (EPIRA) ensure market competitiveness.

The sale of the Casecnan Plant aligns with PSALM's mandate to privatize assets and settle financial obligations of the state-owned National Power Corporation (NPC) under the EPIRA.

Situated near Pantabangan and Munoz in Nueva Ecija, the Casecnan Plant is a run-of-river hydroelectric power facility that diverts water from the Casecnan and Taan Rivers through a 26-kilometer tunnel to generate energy.

Fresh River secured the 165-megawatt Casecnan Plant with the highest bid of USD 526 million.

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