Power bought from firm at P62 per kwh, says Meralco exec
INQUIRER FILE PHOTO
MANILA, Philippines – An official of the Manila Electric Co. (Meralco) admitted Wednesday before the House of Representatives that it bought electricity at P62 per kilowatt hour from a power-generating firm but fell short of confirming reports of collusion between Meralco and suppliers to raise power rates.
Meralco’s Rey Espinosa told the chamber’s energy committee that the P62 kilowatt per hour power it bought from Therma Mobile Inc. (TMO) was given during off peak hours, when prices in the market were relatively cheaper.
He added that they arranged for the bid price to ensure that the TMO plant would not be dispatched.
The committee conducted the hearing amid allegations that there was collusion among power players to shut down their plants amid Meralco’s power rate increase that was stalled by the Supreme Court.
Bayan Muna Partylist Representative Neri Colmenares said Meralco bought power from TMO for P62 per kilowatt hour several times, especially when the Malampaya gas facility off Palawan underwent maintenance shutdown from November to early December 2013.
He added that Meralco bought electricity from TMO at P62 per kwh even when their contract provided only P8.65 per kwh. This effectively contributed to the rate increase, Colmenares said.
Espinosa, however, pointed to the National Grid Corporation of the Philippines for dispatching the P62 kilowatt per hour power rate even when at the time, the supply was adequate.
“So what happened? Why was the P62 cost cleared when the NGCP said there was adequate supply? That is what we have to ask,” he said in Filipino.
On the sidelines of the hearing, Colmenares said Meralco practically confirmed his speculations.
“Meralco admitted that they asked Therma Mobile to bid P62 because they would not want to dispatch,” he said.
Because of this, Colmenares said Meralco should be the one paying the rate increase and not pass this on to the consumers.
“They thought that this could not be bought at P62. They were wrong because it was bought. It can happen once but Meralco bid 22 times,” he said.
“If you erred and it was bought, you can still get away with it the second time, but the third time” We find that hard to believe,” said Colmenares.
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