Manila Bulletin
By Genalyn D. Kabiling & Ellson A. Quismorio
December 12, 2013 (updated)
Manila, Philippines – Malacañang is not inclined to seek suspension of the record-high power rate increase implemented by the Manila Electric Co. (Meralco) despite the alleged collusion of some power suppliers.
“So far, there is no sufficient basis in the law to suspend that process,” Presidential Communications Operations Secretary Herminio Coloma Jr. said in Filipino. He acknowledged that present rules allow power firms like Meralco to automatically pass on charges to consumers.
President Benigno S. Aquino III delivers his message during the symbolic lighting of the Christmas Tree and Ground Lights at the Kalayaan Grounds, Malacañang Palace on Thursday (November 29, 2012). His administration believes there is no basis for Meralco to delay its planned power hike which is too high for most Filipinos to take. (Malacañang Photo Bureau).
Power consumers, however can expect a refund in case the investigation being conducted by energy authorities would reveal an abuse in the upward rate adjustments, Coloma added.
“The EPIRA (Electric Power Reform Industry Act) states that if there are excessive charges, a refund will be the concrete resolution,” Coloma added in Filipino.
Sanctions will also be imposed on power companies if proven they colluded to stage the simultaneous shutdown that led to the P4.15 kilowatt per hour increase in electricity rates, Coloma added.
“The government’s foremost concern is to ease the people’s burden on the imposition of power rate adjustments brought about by the Malampaya shutdown. The Department of Energy (DOE) is working with the Energy Regulatory Commission (ERC) to address this concern,” Coloma said.
TRO Pressed
With Malacañang not inclined to suspend the power rate hike, the Makabayan bloc in the House of Representatives will try to get a temporary restraining order (TRO) on Meralco’s record-setting adjustment.
Bayan Muna Rep. Carlos Zarate bared during the House Minority’s weekly press conference Wednesday that the leftist grouping is studying the possibility of filing an actual case in connection with the impending P4.15 per kilowatt hour (kWh) hike.
“We can still prevent the increase. Together with the other consumer groups, who will be the ones affected, we’re already consulting with some lawyers who in the shorter time, to study and get a TRO if possible,” Zarate said.
The Makabayan bloc constitutes seven members out of the 19-strong Minority under San Juan Rep. Ronaldo Zamora.
Zarate, himself a lawyer, said Makabayan and the concerned consumer groups are looking to file the TRO petition at the soonest possible time, be it before a regional trial court (RTC) or the Supreme Court (SC).
Post-Review Assured
While power rates are market-driven, Coloma assured though that the ERC would conduct a “post-review” of the price adjustments to determine if these are reasonable or not.
He said the DOE) has already asked the ERC “to look into the outages in several power plants that occurred while the Malampaya repairs were taking place.”
“Under the EPIRA law, both DOE and ERC are mandated to ascertain that power rate adjustments are not driven by anti-competitive or market abuse practices,” Coloma said.
He said penalties will be slapped against any abusive power firms. “Wala pong nasa ibabaw ng batas. Lahat po ay tinatrato ng naaayon sa batas,” he said. [Nobody is above the law. Everyone is treated equally in accordance with the law.]
Easing Impact
To ease the impact of the higher electricity rates, Coloma noted that the ERC has already approved a staggered implementation of the adjustment in three tranches.
“Other options for easing the consumers’ burden are being studied, including tighter monitoring of the schedule of shutdowns of power generators,” he said.
He also reiterated that the government is open to reviewing laws and rules related to the power industry to mitigate power rate increases.
“We are open to a review of all of these policies, especially if the outcome is to be able to produce more responsive and progressive reform measures that will result in benefits to our citizens,” he said. source
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