SC extends TRO on Meralco rate hike
INQUIRER FILE PHOTO
MANILA, Philippines—The Supreme Court on Tuesday extended for another 60 days the temporary restraining order on Manila Electric Company’s bid for record high increase in power rate.
“The Court today resolved to extend the existing TRO for an additional 60 days from its expiration or until April 22, 2014,” high court’s information chief Theodore Te said at a press conference.
At the same time, it also stopped several generating companies specifically Masinloc Power Partners Co., Ltd., San Miguel Energy Corporation, South Premiere Power Corporation, First Gas Power Corporation and the National Grid Corporation of the Philippines from collecting generation costs from Meralco.
The high court also ordered the Philippine Electricity Market Corporation from demanding and collecting from Meralco. Both TROs will also expire on April 22.
Last month, the Makabayan bloc from Congress led by Bayan Muna asked the high court to stop power generation companies from collecting generation charges and penalties from Meralco.
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, petitioner said, demanded payment to Meralco, who in turn pass 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,”
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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