House probe sought on Meralco's alleged payment of 'overpriced' generation rates of Quezon plant

The Bayan Muna party-list is calling for an investigation on the alleged payment of Manila Electric Company (Meralco) of overpriced generation rates of a coal-fired power plant in Mauban, Quezon.

Bayan Muna party-list Representatives Carlos Zarate, Ferdinand Gaite, and Eufemia Cullamat have jointly filed House Resolution 1350 urging the House committee on energy to conduct an investigation, in aid of legislation, into the alleged higher generation charges of Quezon Power Philippines Ltd. Co. (QPPL) to Meralco.

The resolution was filed after Bayan Muna and pro-consumer group Matuwid na Singil sa Kuryente completed its analysis of Meralco's power rates.

According to the resolution, their analysis of Meralco generation purchases for 2019 showed that QPPL "has been perennially the most expensive coal power in the country since 2000 with rates 9 to 12% higher than the other coal plants. However, in 2020, Meralco paid QPPL 51 to 82% higher [than] the other coal plants.”

It added that from January to September 2020, Meralco supposedly bought 1.601 billion kilowatt hours (kwh) of electricity from QPPL at P6.73 per kwh on average, while the average price of all other coal power suppliers to Meralco was around P4.20 per kwh during the same period.

The difference of P2.53 per kwh between the prices of QPPL and other power suppliers translates to a total cost of P4.05 billion of premium, the resolution added, which is passed on to Meralco customers.

“It is utterly unacceptable to Filipino consumers to be subjected to deceptive, unfair, and unconscionable practices and be burdened by higher fees and charges just to satisfy the greed for profit of capitalists and power oligarchs,” the resolution read.

“As legislators and representatives of the people, it is our primordial duty to  protect the interest and welfare of the Filipino consumers, especially during the COVID-19 pandemic where millions of Filipinos lost their source of income,” it added.

In an earlier statement, Meralco spokesperson Joe Zaldarriaga said that the company’s retail rates have significantly gone down to its lowest levels in years.

“In fact, at around P8 per kwh, it has already gone down by almost P1 per kwh on a year to date comparison,” he said.

“The generation charge, on the other hand, has dropped by 17% during the same period last year as a result of our newly implemented power supply agreements which took effect last year,” he added.

Zaldarriaga emphasized that Meralco’s power supply agreements, including the rates therein, have undergone public hearings participated in by various groups.

“It is duly and legally approved by the regulator and has fully complied with lawful requirements. Important to note as well, all of Meralco’s pass-through charges also undergo confirmation hearings by ERC,” he said.—AOL, GMA News