2 generation firms warn of Meralco shutdown
AFP FILE PHOTO
MANILA, Philippines—Power generation companies on Monday called on the Supreme Court to dismiss the petition seeking to stop the collection of generation charge, as it warned that an order against it would be detrimental to the consumers and the national economy.
Therma Mobile Inc. (TMO) and Therma Luzon Inc. (TLI) in their comment said “Meralco’s (Manila Electric Company) inability to collect from consumers does not relieve it of its contractual and legally-binding obligation to pay TMO and TLI under its power supply agreements.”
“Meralco’s non-payment will result [in] the power producers’ default in their existing financial obligations, inability to procure fuel (which runs the generating facilities) and eventually their inevitable closure,” they warned.
TMO, TLI and other generation companies was impleaded in the petition filed against Meralco before the Supreme Court, after Meralco, in its counter-petition, said it would be unfair to stop it from adjusting its rates while transmission and generation companies impost high fees on power distribution utilities.
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