Debate on power rate hike to include alleged price manipulation

(Updated 8:13 p.m.) Petitioners and respondents in the controversial power rate hike case have agreed on the major issues to debate in oral arguments, including whether or not power firms colluded to manipulate the price of electricity.

According to Anakpawis party-list Representative Fernando Hicap, a petitioner in the case, there is no basis for the P4.15-per-kilowatt-hour rate increase implemented by Manila Electric Co (Meralco). 

"In fact, evidence shows that collusion led to the increase of power generation cost allegedly sustained by Meralco," he said last December.

The Supreme Court has issued a temporary restraining order on the price hike and has scheduled oral arguments on January 21.

In a preliminary conference at the Supreme Court on Monday, parties to the case also agreed to argue whether Manila Electric Co. violated its customers' right to due process when it implemented a rate adjustment in December without conducting a hearing.

According to the SC Public Information Office, a preliminary conference is a "useful tool to manage the issues before the oral arguments in SC cases with multiple parties and complex issues."

 

"The limitation of issues during the preliminary conference provides a window into what issues the SC considers important during the orals," it added.

 

During the preliminary conference, the parties also agreed to prove or disprove that power firms colluded to manipulate the price of electricity.

 

The oral arguments will also seek to determine the legality of amendments made to the Implementing Rules and Regulation of the Electric Power Industry Reform Act (Epira). 

 

The particular section initially prohibited automatic rate increases. However, the Department of Energy later amended the rules to exempt certain rate adjustment and increase mechanisms from the publication requirements.

 

Lastly, the parties are also expected to tackle the legality of two sections of the Epira law that say prices charged by generation companies and electricty suppliers are not subject to approval by the Energy Regulatory Commission.

 

Petitioners in the case were will have 30 minutes to present their arguments against the power rate hike.

The case stems from petitions filed by party-list lawmakers from Anakpawis, Bayan Muna, Gabriela Women's Party, and Act Teachers and another filed by the National Association of Electricity Consumers for Reforms (Nasecore) and the Federation of Las Piñas Homeowners Association.

 

Original respondents in the case, namely Meralco, the Department of Energy and the Energy Regulatory Commission, will also be given 30 minutes to argue in favor of the rate hike. Another half hour will also be given to intervenors in the case.

 

Power suppliers, added as respondents following a plea from Meralco, will also have 30 minutes to defend their side. — JDS, GMA News