SC asked to stop power firms from collecting charges, penalties
MANILA, Philippines—The Makabayan bloc from Congress led by Bayan Muna on Monday asked the Supreme Court to stop power generation companies from collecting generation charges and penalties from the Manila Electric Company (Meralco) while the petition against the P4.15 per kilowatt-hour power rate increase is still pending.
In a 39-page petition, Bayan Muna and several co-petitioners asked SC to include in its 60 day restraining order issued last Dec. 23 the generation companies that are allegedly colluding with Meralco and the Energy Regulatory Commission.
“Considering that said generation charge is the main basis of the rate increase previously enjoined by this Honorable Court, it is but proper and just to restrain its implementation in order to afford petitioners and the public effective injunctive relief,” petitioners said.
The power rate increase, according to the petitioners, was due to the high generation charge brought about by the alleged collusion of Meralco, the GenCos and ERC.
These GenCos, the petitioners said, demanded payment to Meralco, who in turn passed through the generation charges to the public. With the 60-day restraining order, GenCos threatened to impose penalties and interest rates.
“Clearly, since generation charge is an unjustly automatic pass through charge to the public, the pressure and threats of legal action and high interest penalties by these GENCOs on Meralco for the payment of the generation charge is actually a threat and pressure to Petitioners and the public,”
“Should respondent Meralco give in to these GENCO’s payment demands, it is the petitioners and the public who will suffer grave and irreparable injury because said imposition will merely be passed through to the public. Respondents GENCOs must therefore be enjoined from imposing or exacting payment for its unjust and unlawful generation charge,” they added.
“Respondents GenCos must therefore be enjoined from imposing or exacting payment for its unjust and unlawful generation charge.”
Meralco, in its comment, warned of rotating blackouts if the restraining order issued by the high court will not be lifted saying it may come at a point where they can no longer purchase electricity needed for the succeeding months.
“The generation companies may then eventually stop supplying electricity to Meralco. The transmission company may stop transmitting if Meralco is unable to pay for the transmission charges. The entire power industry may come to a screeching halt,” Meralco said.
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