SC asked to stop Meralco’s record power-rate increase

AFP FILE PHOTO

MANILA, Philippines – The Makabayan bloc from the House of Representatives asked the Supreme Court to stop the implementation of the record-high power rate increase.

In a 24-page petition, the Makabayan bloc composed of Bayan Muna Representatives Neri Colmenares and Carlos Isagani Zarate, Gabriela Representatives Luz Ilagan and Emmi De Jesus, Act Teachers Representative Antonio Tinio and Kabataan Representatives Terry Ridon said the Energy Regulatory Commission committed grave abuse of discretion when it provisionally approved the proposal of the Manila Electric Company to pass on to consumers the increase in the generation cost without complying with the requirements under the law.

Meralco, on Dec. 5, wrote the ERC an unverified letter stating its intention to pass on to consumers the generation cost it incurred for November due to the unannounced shutdown of the Malampaya plant and the scheduled maintenance of Pagbilao 1 and Sual 1. Four days later, the ERC approved Meralco’s proposal.

“ERC gravely abused its discretion in provisionally approving the proposal of Meralco without affording the affected customers the right to be heard on the matter as is required under the law and jurisprudence,” petitioners said.

Petitioners also pointed that under the EPIRA law, ERC is required to promote competition and penalize market abusers.

“The ERC, considering the suspiciously sudden and simultaneous shutdown of various power plants to coincide with the announced Malampaya ‘turnaround,’ should not have hastily approved the Meralco-proposed rate increase barely three days from its submission. This hasty decision violates various provisions in the EPIRA law,” petitioners said.

The ERC, the petitioners said, has the authority to investigate highly irregular shutdowns, which led to increase power rate.

“The ERC, however, blatantly reneged on its duty to protect public from anti-competitive practices and market abuse when it approved the P4.15-increase despite clear indications of irregularity in the simultaneous planned and unplanned shutdowns…” they stated.

Also, the group said Sections 6 and 29 of the Electric Power Industry Reform Act (EPIRA) are unconstitutional. Under the said provisions, the power generation and supply sectors are not public utilities and that their charges to the public are beyond the regulation of the ERC.

“Generation and supply of power, being imbued with public interest, cannot be treated like shares of stocks that stock market players can manipulate anytime they want…EPIRA’s mandate as contained in Sections 6 and 29, for the state to abandon its power to regulate the excessive impositions of power generators and suppliers is clearly unconstitutional as the same will not be for the common good of the Filipinos, the consumers particularly,” they said.

This is not the first when shutdowns and outages have become the cause for the sharp increase in electricity. In 2011 and 2012, similar shutdown happened that resulted to higher power rates.

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