ERB orders moratorium on power rate hikes

The five-man board of the newly-created Energy Regulatory Commission (ERC) has ordered a three-month suspension on all rate increase applications pending before its court, including that of the Manila Electric Co. (Meralco), ERC chairman Fe B. Barin said yesterday.

"We have sent them an advice (suspending all hearings on rate applications for three months). We told them to bare with us in the next three months since we have to study all the rate applications," Barin said.

Market analysts said that the ERC is likely to drop the Meralco rate application within this year.

But Barin was quick to deny that they are not dropping the Meralco application. "Of course not. We just want them to give us time to study. If they have waited long for this, maybe they could still wait for another three months," she said.

Meralco has a pending application for a 30-centavo rate hike since April 2000. The Lopez-owned power distribution utility, servicing most of Metro Manila and nearby provinces, argued that delays in the approval of the rate increase caused deterioration in its operations.

The power giant also claimed that their expansion projects have been affected by the said delay.

Barin, however, pointed out that the new Board wants to review the applications to determine if they would need additional documents to support the claims.

"We need to prioritize. It is not that they are less important but we should be given time, since we just assumed office, to study if we still have to require them to submit additional documents under the present law," she said.

She said if they would be allowed to run through the applications, they would be able to pass judgment/decision quickly.

She also added that they are also not keen on issuing provisional authority for Meralco until after they have reviewed the application.

"We are not considering anything. We have to be familiar with the application before passing judgment," she said.

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