‘Stop generation firms from imposing charges on Meralco’

MANILA, Philippines - After convincing the Supreme Court to order a 60-day freeze on Manila Electric Co. (Meralco)’s sharp electricity rate increase, militant party-list groups are now urging the High Court to stop generation companies from imposing charges on Meralco while anti-rate hike petitions are still unresolved.  

In a 39-page amended petition, militant party-list groups led by Bayan Muna Rep. Neri Colmenares alleged that the record-high Meralco rate hike was a result of very high generation charge “resulting from acts of collusion” by the generation companies, now considered respondents in the case.

Petitioners stressed that the generation companies have demanded payment from the public through Meralco of their pass through generation charges.

The petitioners also decried the generation companies’ threatening Meralco with high penalties and interest rates for the delay in payment of the charges due to the 60-day temporary restraining order issued by the SC last month.

The TRO stopped Meralco and the Energy Regulatory Commission (ERC) from implementing a rate hike of more than P4 that would have taken effect last month.

“Clearly, since generation charge is an unjustly automatic pass through charge to the public, the pressure and threats of legal action and high interest penalties by these generation companies on Meralco for the payment of the generation charge are actually a threat and pressure to petitioners and the public,” the petitioners argued.

“Should respondent Meralco give in to these generation companies’ payment demands, it is the petitioners and the public who will suffer grave and irreparable injury because said imposition will merely be passed to the public,” they said. “Respondents generation companies must therefore be enjoined from imposing or exacting payment for its unjust and unlawful generation charge.”  

The group filed the amended petition in compliance with the court’s order last week that they include the generation companies as respondents.

Named new respondents in the case were the Philippine Electricity Market Corp. (PEMC), operator of electricity trading floor Wholesale Electricity Spot Market (WESM); and power suppliers SEM-Calaca Power Corp., Masinloc Power Partners Corp., Therma Luzon Inc., San Miguel Energy Corp., South Premier Power Corp. and Therma Mobile Inc.

Consumer groups led by National Association of Electricity Consumers for Reforms (Nasecore) also filed a similar amended petition.

The SC had ruled that the generation companies and power firms were a “necessary party” in the case.

Also yesterday, petitioners and respondents in the case met for the first time at the SC.

In a preliminary conference facilitated by the justice in charge, the two parties agreed on key procedural and substantial issues to be debated on in the oral arguments on Jan. 21.  – With Jess Diaz, Paolo  Romero, Christina Mendez, Rhodina Villanueva