SC extends TRO vs. Meralco power rate hike

Meralco first vice president and head legal William Pamintuan said that the company will abide by the Supreme Court's decision, though it has not yet received the court's official order.

He also said Meralco will continue to hold discussions with the generation companies, the Philippine Electricity Market Corp., the Department of Energy, the Energy Regulatory Commission (ERC), consumer groups and other stakeholders regarding this issue.

"Meralco is still hopeful that this case before the SC will be resolved at the soonest possible time to the satisfaction of all stakeholders," he said.

'A welcome development'

The SC decision to extend the TRO is a welcome development for consumers as the real cost of electricity has not yet been determined, Energy Secretary Carlos Jericho Petilla told reporters on the sidelines of the Consultative Dialog on Electric Power Industry Reform Act of 2001 (EPIRA) Review held in Taguig City.

"From consumers' point of view, maganda 'yan in a sense na 'di naman tayo nakakasigurado kung ano ang presyong dapat. At hangga't hindi pa ito nadedesisyunan, e alangan namang singilin agad ang mga tao ngayon," he said.

Petilla also said he is concerned about the fuel supply of generating companies, but expressed confidence that the extension will not cause supply constraints in the coming months because they can recover costs for January.

"Ang January ay hindi covered ng TRO. Mayroon siyang [generators] basehan to negotiate with Meralco to shoulder the fuel cost in the meantime," he added.

Last February 6, Meralco said it would file a petition with the Energy Regulatory Commission (ERC) to recover the P5.33 per kilowatt hour (kWh) rise in generation charge in January.

The January spike in generation charge is not covered by the Supreme Court's TRO on the P4.15 per kWh hike.

ERC executive director Francis Juan said Meralco just filed its application on Monday.

"May 30 days na ibinibigay for comments bago makaaksyon ang ERC... Hindi ko masabi ngayon kung ano magiging desisyon ng ERC," he said.
 
What the ERC is sure of is it will follow the hearing process on Meralco's proposal to recover January charges in the March billing.

"Although kahilingan ng Meralco na ang kanilang karagdagang sinigil ay simulan sa kanilang March billing, maaring kakapusin sa oras bago makapagbigay ng any relief ang ERC," Juan said.

"Hinihintay ng Commission kung ano yung mga mungkahi na manggagaling naman sa mga sector na maapektuhan nito," he added.

However, Petilla underscored that the solution is to decide on what the proper electricity rates should be quickly as possible.

"Sa madaling panahon, kung matutugunan natin ang pagdesisyon sa presyo, mas madali na sa lahat dahil wala nang uncertainty kung magkano ang babayaran at magkano ang sisingilin," he said.

"It's only a decision we're waiting for right now. Itong mga TRO na 'to pansamantala lang," he added.

The decision will come from either the ERC or the Supreme Court, Petilla said.—With Elizabeth Marcelo and Danessa O. Rivera/KG/BM, GMA News