February 3, 2014
Meralco to explain P4.15 per Kwh hike before Supreme Court - Manila Bulletin
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Manila, Philippines – The Manila Electric Company (Meralco) is scheduled to explain and justify today the P4.15 per kilowatt hour increase on electricity bills it imposed on its subscribers on a staggered basis starting last month.
Meralco’s side will be presented before the Supreme Court (SC) this afternoon during the continuation of the oral arguments on two cases challenging the rate increase approved conditionally by the Energy Regulatory Commission (ERC) on December 9, 2013.
During the hearing last January 21, the petitioners on the two cases in behalf of Meralco subscribers had aired their arguments and sought the nullification of the increase.
The SC had earlier issued a 60-day temporary restraining order (TRO) on the rate adjustment and had allowed Meralco to file its own complaint, which was treated as the third case on the issue, against the power producers.
The petitioners in the two cases were also allowed to implead the power producers and Philippine Electricity Market Corporation (PEMC), which operates the Wholesale Electricity Spot Market (WESM) in the cases.
Meralco is expected to push for the collection of the rate increase and the immediate lifting of the TRO as it had claimed in its pleadings filed with the SC that the adjustment on the generation charge was merely passed on to it by the country’s power producers who should be blamed for the rate hike.
The side of consumers were presented in two petitions filed by Bayan Muna Representatives Neri Colmenares and Carlos Isagani Zarate; Gabriela Women’s Party Reps. Luz Ilagan and Emmi de Jesus; ACT Teachers Party-list Rep. Antonio Tinio and Kabataan Party-list Rep. Terry Ridon, and a group of Meralco consumers led by the National Association of Electricity Consumers for Reforms (Nasecore) with the Federation of Village Associations (FOVA) and the Federation of Las Piñas Homeowners Associations (FOLPHA).
On orders of the SC, the two groups of petitioners against the rate increase had amended their petitions and named as respondents the Philippine Electricity Market Corporation (PEMC), which operates the Wholesale Electricity Spot Market (WESM), the SEM-Calaca Power Corp., Masinloc Power Partners Corp., Therma Luzon, Inc., San Miguel Energy Corp., South Premier Power Corp., and Therma Mobile, Inc.
Meralco had also filed its own petition against the power producers to stop them from collecting the costs of generation charges.
It named as respondents the PEMC, the National Grid Corporation of the Philippines (NGCP), and several power producers identified as First Gas Power Corp.; South Premiere Power Corp.; San Miguel Energy Corp.; Masinloc Power Partners Co. Ltd.; Quezon Power (Phils.), Ltd. Co.; Therma Luzon, Inc.; Sem-Calaca Power Corp.; FGP Corp.; 1590 Energy Corp.; AP Renewables, Inc.; Bac-Man Energy Development Corp./Bac-Man Geothermal, Inc.; First Gen Hydro Power Corp.; GNPower Mariveles Coal Plant, Ltd. Co.; PANASIA Energy Holdings, Inc.; Power Sector Assets & Liabilities Management Corp.; SN Aboitiz Power; Strategic Power Development Corp.; Trans-Asia Power Generation Corp.; and Vivant Sta. Clara Northern Renewables Generation Corp.
During the January 21 oral arguments, the petitioners told the SC that the ERC violated the Constitution in approving the increase.
Lawyers Leonard de Vera, Neri Colmenares, and Carlos Zarate said the ERC failed to protect the interest of the public when it’s hastily approved Meralco’s petition for an increase without conducting a hearing and investigation.
They said the rate adjustment given by ERC without notice and hearing was a violation of the consumer’s right to due process and the provision in the Electric Power Industry Reform Act (EPIRA).
Following the TRO issued by the SC on December 23, 2013, Meralco had announced that its generation charge contained in the electric bills of consumers would remain at P5.67 per kilowatt hour, the rate level in the November billings.
It had also announced that it is ready to refund the amount covered by the SC TRO for consumers who have paid their December electric bills.
Meralco attributed the abrupt increase in its generation cost to the maintenance shutdown of the Malampaya facility that supplies natural gas to three major power plants – Ilijan, San Lorenzo and Sta Rita – which supply an aggregate capacity of 2700 megawatts (MW) to its franchise area.
It also said that the shutdown of Malampaya coincided with the scheduled maintenance of two other plants, Pagbilao 2 and Sual 1, which also collectively contribute over 950 MW to its requirements.
These developments, it stressed, forced Meralco to buy expensive power from the Wholesale Electricity Spot Market (WESM).
On December 5, 2013, Meralco informed ERC that the total cost of generation to be passed on to its almost five million customers amounted to P22.64 billion, equivalent to a generation charge for December 2013 billing of P9.1070 per kwh.
It pointed out that the cost would result to an increase of P4.15 per kWh for residential customers.
Source: Top Stories - Google News
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