SC stops Meralco from enforcing rate increase indefinitely

(Updated 5:29 p.m.) BAGUIO CITY – The Manila Electric Company is not allowed to enforce a P4.15 per kilowatt hour power rate increase for an indefinite period of time, the Supreme Court ruled on Tuesday, supplanting an earlier injunction against the utility which expired today.

"The court, voting 10-4-1, issued a temporary restraining order effective immediately and until further orders," said Public Information Office chief and spokesman Theodore Te in a media briefing here.

The power utility has not yet received a copy of the SC decision. "While we have yet to see and study the order, we will comply with the SC decision," Meralco head of utility economics Larry Fernandez said.

Fernandez reiterated the record-high December 2013 generation charge is only a pass-through charge and Merlaco does not earn from it.

On the part of the Energy Regulatory Commission (ERC), Executive Director Francis Juan said status quo will will be observed until the regulator gets a copy of the SC order. “We will have to secure a copy of the resolution to know if there is anything the ERC needs to do pursuant to it.

"If none, the ERC will just await further orders from the Court," he added.

Associate Justices Arturo Brion, Roberto Abad, Lucas Bersamin, and Diosdado Peralta, Te noted.

Associate Justice Estela Perlas-Bernabe took no part in the voting, the court official added.

The latest ruling would effectively extend the TRO, but is not an "extension" but a "new" TRO since the justices held a voting on the matter.

It is also a ruling on a motion arlier filed by petitioner-party-list lawmakers from the Makabayan bloc of the House of Representatives.

In a text message to reporters, Presidential spokesperson Edwin Lacierda said the Palace welcomes the Supreme Court decision.

"While we wait for a final decision on the case, an extension of the TRO would certainly provide comfort to our countrymen especially at this time when there is more consumption demand during summer," he said.

Petitioners

This is the second time the high court extended the TRO that was originally issued on December 23, 2013. In February, the SC extended the 60-day TRO for another 60 days which expired today, April 22.

The petitioners who asked for the new extension include ACT Teachers party list Rep. Antonio Tinio, Bayan Muna Reps. Neri Colmenares and Isagani Zarate, Gabriela Women's Party Reps. Luz Ilagan and Emmi de Jesus, and Kabataan Rep. Terry Ridon.

Two other TROs were also issued in February, which stopped other respondents from "demanding and collecting the deferred amounts representing the affected costs based on the matters raised in Meralco's December 5, 2013 letter."

One TRO involved the power generating companies Masinloc Power Partners Co. Ltd. – courtesy of AES Philippines – San Miguel Energy Corp., South Premiere Power Corp., and First Gas Power Corp., as well as the power transmission line operator National Grid Corp of the Philippines. The other was issued to the Philippine Electricity Market Corp.

Last December, the Energy Regulatory Commission allowed Meralco to increase its power rates by P4.15 per kWh due to higher generation costs incurred from buying higher-priced electricity at the Wholesale Electricity Spot Market (WESM) in November.

Meralco claimed it needed to increase its electricity rates, citing the higher generation costs that materialized with the scheduled maintenance shutdown of the Malampaya natural gas platform from November 10 to December 11.

It said the situation compelled it to buy expensive electricity from WESM –  while Malampaya was having maintenance check up and repairs – to meet the 2,700-megawatt deficit during the peak load demand in Luzon. – With reports from Danessa Rivera and Kimberly Tan/VS, GMA News