SC asked to stop power rate increase

MANILA, Philippines - Amid mounting public outrage over rising power costs, militant lawmakers asked the Supreme Court (SC) yesterday to stop the Manila Electric Co. (Meralco) from charging P4.15 more per kilowatt-hour  beginning this month until March.

In a 24-page petition, the lawmakers asked the high court to issue a temporary restraining order (TRO) preventing Meralco from implementing the sharp power rate hike even on a staggered basis.

They also asked the SC to nullify an earlier decision of the Energy Regulatory Commission approving the increase, saying the ERC decision was a violation of the Electric Power Industry Reform Act (EPIRA).

The petitioners also urged the high court to strike down as unconstitutional Sections 6 and 29 of EPIRA declaring that the power generation and supply sectors are not public utilities subject to regulation by the ERC.

The lawmaker-petitioners said oral arguments should be held immediately to allow parties to thresh out and resolve issues the soonest time possible.

The petitioners were Bayan Muna Representatives Neri Colmenares and Carlos Isagani Zarate, Gabriela Women’s Party Reps. Luz Ilagan and Emmi de Jesus, ACT Teachers Party-list Rep. Antonio Tinio and Kabataan Party-list Rep. Terry Ridon.

The ERC was also a respondent in the petition.

Petitioners alleged the ERC committed grave abuse of discretion in approving Meralco’s proposal to pass on to consumers the increase in generation cost.

Meralco said it had to significantly raise rates because the scheduled maintenance shutdown of the Malampaya natural gas plant and the “forced shutdown” of other plants had forced the distributor to buy its supply from the higher priced Wholesale Electricity Spot Market (WESM).

The petitioners said the ERC abused its discretion when it provisionally approved the proposal of Meralco without conducting a public hearing as required under the EPIRA.

“It is really mind boggling that the ERC hastily approved Meralco’s letter request for staggered increase and at the same time order the investigation of the suspected collusion or violation of law of electricity generators and distributor; thus, making us believe that the ERC is also in collusion with vested oil interests in their profiteering activities,” the petition read.

They said the ERC is mandated to promote competition and penalize abuse of market power.

Meralco’s request for rate adjustment, they said, was approved only three days after it was made and amid “suspiciously sudden and simultaneous shutdown of various power plants to coincide with the announced Malampaya ‘turnaround’.” 

While the petition was filed while the high court is on holiday recess, the chief justice may act on the case upon recommendation of the magistrate to whom the case would be assigned.

Earlier this week, another group of militant lawmakers filed a formal complaint before the Department of Justice (DOJ) against Meralco and several power firms for allegedly colluding with one another to manipulate power cost.

Akbayan Reps. Walden Bello and Ibarra Gutierrez III specifically asked the DOJ to investigate Meralco, First Gas Power Corp., San Miguel Corp. Global Power Holdings, Aboitiz Power Corp., Team Energy Corp., AES Philippines and DMCI Holdings Inc. for “possible violations of laws prohibiting cartelization, monopolies and combinations in restraint of trade as defined in competition laws.”

Justice Secretary Leila de Lima had ordered DOJ’s office for competition to start its fact-finding investigation and submit findings and recommendations by next month.

Meanwhile, Senate President Franklin Drilon, for his part, said the National Bureau of Investigation (NBI) may have to step in to investigate the alleged collusion among power firms. The NBI is under the DOJ. – With Jess Diaz, Christina Mendez