TRO petition mulled vs Meralco power rate hike

By: Maila Ager - 11 years ago

Sen. Francis Escudero. DELFIN T. MALLARI JR./INQUIRER SOUTHERN LUZON FILE PHOTO

MANILA, Philippines – Senator Francis “Chiz” Escudero said he and other groups were looking into the possibility of seeking a temporary restraining order (TRO) from the court to stop the Manila Electric Co. (Meralco) from charging its consumers P4.15 per kilowatt per hour (kWh) beginning this December.

“I think that is being studied by some groups already and even on our part, we are looking into it,” Escudero said in a statement on Wednesday.

“Taking this to court and ask for a TRO is the closest, legal and soundest option available now,” he said.

Escudero said his office was in the process of obtaining pertinent documents for review and may challenge in court Meralco’s power rate hikes, which will be implemented in three instalments starting this month.

The increase, he said, was clearly an abuse of the automatic increase provision granted to Meralco by the Energy Regulation Commission (ERC.)

“Meralco cannot justify its increase with the generation cost rationale. If they are too quick to impose a price hike, they must also this quick or quicker to refund the consumers and give us our rebates in the shortest period of time. It should bequid pro quo,” he said.

Escudero also blasted the ERC for sleeping on the job and allowing an antiquated system to prevail, which he said was inherently biased against consumers.

“The ERC has been using a cost-based formula in fixing rates when it should use a market-based formula. In the cost-based system, the only basis they have in pricing is the cost presented by the distribution facility applying for an increase. It does not factor in the general market, like that much-awaited rebate. ERC does not even factor in the multiplier effect it will have on the market,” he said.

The senator also welcomed an inquiry by the Senate to scrutinize Meralco’s power rate hike, the ERC and the Department of Energy.

“We still have one week to conduct sessions and hearing. We just passed the national budget and that’s already eighty percent off our load for this session. I believe we still have time. I hope this increase will be short-lived and hopefully will be stopped via the intervention of courts,” Escudero added.