SC halts Meralco rate hike

MANILA, Philippines (UPDATED) - The Supreme Court en banc on Monday issued a 60-day temporary restraining order (TRO) on the Manila Electric Company's (Meralco) P4.15 per kilowatt hour rate increase.

Supreme Court spokesperson Theodore Te said the Court has set the oral arguments on January 21 to discuss the staggered rate hike that started this month.

Te, meanwhile, clarified that the TRO does not cover the power firm's bills for December.

The tribunal's resolution stemmed from two consolidated petitions questioning the validity of the Energy Regulatory Commission's (ERC) implementation of the record rate increase starting December 9.

Related: 3-phased power rate hike approved by ERC

The class suits were filed by militant lawmakers from the Makabayan bloc of the House of Representatives and by private organizations led by the National Association of Electricity Consumers for Reforms.

A third petition was filed Monday by militant groups led by Anakpawis requesting the Court to issue a writ of mandamus against the price increase.

Meralco president Oscar Reyes had said that delaying the increase in rates would only prolong the consumers' agony as the power firm needs to purchase electricity from a wholesale provider.

Meralco earlier explained that the increases are warranted at the impending closure of the Malampaya offshore gas field project that recently underwent maintenance.

On Friday night, the ERC ordered Meralco not to implement further increases in its generation charge for January 2014 after the increase in the generation charge for December 2013 of P3.44 per kilowatt-hour.