Party-list groups ask SC to stop Meralco rate hike

Several party-list groups on Thursday asked the Supreme Court to stop the controversial and impending P4.15 per kilowatt-hour rate increase by Meralco, the first part of which is set to take effect this month.

 

In a petition, Bayan Muna, Gabriela Women's Party, and Act Teachers asked the high court to declare the power rate hike granted by the Energy Regulatory Commission to Meralco as "null and void."

 

The petitioners also asked the high tribunal to issue a temporary restraining order against the rate hike and in the meantime hold oral arguments "so that issues could be more exhaustively threshed out."

 

Meralco earlier announced a P4.15 per kilowatt-hour increase in its electricity rates due to the scheduled shutdown of the Malampaya natural gas platform that underwent maintenance from November 10 to December 11.

 

Meralco claimed it was forced to buy expensive electricity from the Wholesale Electricity Spot Market during the scheduled Malampaya shutdown just to meet the 2,700-megawatt deficit of the electricity peak load demand of Luzon.

 

The P4.15-increase will be divided into three tranches consisting of a P2 raise in December, P1 in February, and P0.44 in March, along with the corresponding taxes and service charges.

 

"ERC's approval of Meralco's proposal to pass on to consumers the increase in the generation cost for November 2013 is void because ERC failed to comply with the due process requirements under the law," the petitioner said.

 

They said affected customers were denied their right to be heard on the matter as required under the law and jurisprudence, when ERC approved the rate hike last December 9, a day after Meralco submitted to the ERC an unverified letter informing the government about the increase.

 

"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.  

 

"ERC's approval of Meralco's proposal to pass on to consumers the increase in the generation cost for November 2013 is a grave abuse of discretion because said approval was violative of the EPIRA,"

The groups said among the portions of the EPIRA law violated by what they called a "hasty decision" to allow the power rate hike were: 

 

— Mark Merueñas/RSJ, GMA News