Probe urged on coal auction issues

Rep. Mark Cojuangco (Pangasinan, 2nd district) has urged the House Committee on Energy to conduct an “immediate comprehensive inquiry, “ in aid of legislation” regarding the Department of Energy’s (DOE) moves in relation to the bidding of the country’s pre-determined coal resources.

The lawmaker, in a privilege speech, noted that clarifications should be made as this bidding process can affect not just energy investments, but the security of local coal supply.

“I am formally calling upon the House Committee on Energy, the Committee on Rules to an immediate comprehensive inquiry in aid of legislation to DOE’s auction guidelines, legal frameworks, and transparency safeguards for the Semirara coal blocks, ensuring an interrupted baseload power generation,” he said.

Cojuangco noted that a hearing is needed as there are “policy and legal controversy, exclusion and restrictive rules” involved in the current bid process where industry stakeholders have already raised alarms, especially due to “a lack of transparency.”

“The process has been marred by sudden rule shifts and a very controversial requirement, such as forced asset surrender rules that spark serious questions under our laws. It seems confiscatory,” the lawmaker pointed out.

He said that this issue will have an effect on investor confidence.

“How can we invite investments and preach ease of doing business when the rules governing our largest natural resource extractions projects are constantly thrown into question,” Cojuangco said.

“The DOE must explain its legal basis and policy consistency regarding these restrictive frameworks, and ensure that our baseload power supply is never compromised by bureaucratic hubris.”

Earlier this month, the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI) also expressed its concerns on the effects of DOE and the Department of Environment and Natural Resources’ (DENR) Joint Administrative Order (JAO) No. 2026-01, on various businesses in the country.

The JCCIPI said that the most pressing matter on the JAO are the provisions on asset turnover by existing operators participating in bidding processes for mining and resource contracts.

The chamber said that among its key concerns on this provision of the JAO is that recovery, amortization, or depreciation of an asset’s cost does not, by itself, necessarily transfer its legal ownership to the government.

Another issue raised by the chamber is that bidding rules should be clear, transparent and applied equally to all qualified participants.

Earlier, the Chamber of Mines of the Philippines, the Philippine Nickel Industry Association and Semirara Mining and Power Corp. (SMPC) also questioned the DOE-DENR JAO.

Despite these, the DOE insisted that bidding of pre-determined coal resource areas including the Semirara mine site will continue before the end of the year.