Presidential Spokesman Edwin Lacierda: Supportive. INQUIRER FILE PHOTO
MANILA, Philippines – Amid the Manila Electric Co. (Meralco)’s warning of rotational blackouts following a temporary restraining order on its power rate hike, Malacañang on Wednesday clarified that it is not against companies earning a profit as long as it is not excessive.
“I think reasonable profit is fair to everyone,” Presidential spokesperson Edwin Lacierda said during a press briefing when asked about Meralco’s supposed “huge profits” the past years.
However, he pointed out that President Benigno Aquino III said there is a need to check if there were indeed cases of “excessive profits.”
“Doon pumapasok talaga iyong tinatawag na disgorgement of excess profits under the ERC (Energy Regulatory Commission),” Lacierda said.
The spokesperson said that it will still depend on the investigation if that will happen.
Under Section 45 of Republic Act 9136 or the Electric Power Industry Reform Act (Epira), anyone found to have engaged in market power abuse of anti-competitive acts should be penalized by the ERC.
Penalties or remedies to the violation include “the imposition of price controls, issuance of injunctions, requirement of divestment or disgorgement of excess profits and imposition of fines and penalties.”
Lacierda declined to comment on how the disgorgement will be implemented, saying the questions are “hypothetical.”
Last week, Meralco warned of rotational blackouts because of its supposed inability to pay for transmission charges pending the power rate hike.
The Supreme Court issued a temporary restraining order on the rate increase last December.
Both Energy Secretary Carlos Jericho Petilla and Justice Secretary Leila De Lima are investigating the issue, including whether power companies colluded to jack up the price of electricity by shutting down power plants simultaneously.
Related stories
Meralco hikes rates by up to P3 per kWh
Meralco to refund pre-TRO payments