(The Philippine Star) | Updated February 19, 2014 - 12:00am
MANILA, Philippines - The Supreme Court (SC) extended yesterday by another 60 days its temporary restraining order (TRO) stopping the Manila Electric Co. (Meralco) and the Energy Regulatory Commission (ERC) from enforcing an electricity rate increase of P4.15 per kilowatt-hour.
The SC issued the TRO last Dec. 23.
SC spokesman Theodore Te said the justices decided in session to partially grant the urgent motion of petitioners led by Bayan Muna Representatives Neri Colmenares and Isagani Zarate last week to extend the TRO before it expires on Feb. 23.
At Malacañang, Presidential Communications Operations Office Secretary Herminio Coloma Jr. said, “We respect the decision of the SC extending the effectivity of the TRO it issued on the power hike issue.”
Petitioners wanted the TRO extended for an indefinite period or until the SC rules on the case.
The SC also issued yesterday another TRO enjoining generation companies and power suppliers from demanding and collecting generation charges from Meralco.
Te said the new order covers generating companies Masinloc Power Partners Co. Ltd., San Miguel Energy Corp., South Premiere Power Corp., First Gas Power Corp., and the National Grid Corp. of the Philippines.
The TRO also covers the Philippine Electricity Market Corp. (PEMC).
Both TROs would remain in effect until April 22.
The other petitioners are Representatives Luz Ilagan and Emmie de Jesus of Gabriela Women’s Party, Antonio Tinio of ACT Teachers and Terry Ridon of Kabataan.
Meralco to abide by TRO
Meralco will abide by the extended TRO.
William Pamintuan, Meralco first vice president and legal division head, said: “Meralco will abide by the decision of the SC and will continue to discuss with the generation companies, PEMC, ERC, Department of Energy (DOE), consumer groups and other stakeholders regarding this issue.”
“Meralco is still hopeful that this case before the SC will be resolved at the soonest possible time to the satisfaction of all stakeholders,” he added.
Meralco has not yet received a copy of the SC decision, Pamintuan said. Meralco may be forced to pay roughly P2 billion to the PEMC, the operator of the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.
The DOE has instructed PEMC to draw Meralco’s P2-billion bond or security deposit on the back of the power distributor’s failure to pay its obligations to power generators for capacity bought because of the TRO.
PEMC is mulling on drawing Meralco’s bond, a prudential requirement to allow the company to settle its dues to power generators. A bond is a security deposit, which WESM buyers are mandated to post or issue to PEMC to cover their WESM purchases over a specified period.
PEMC president Melinda Ocampo said yesterday no final decision has yet been made on whether PEMC would draw the bond.
PEMC is still waiting for a copy of the SC decision to extend the TRO to see if it covers the PEMC, she added.
If PEMC is included in the TRO, it could not draw Meralco’s P2-billion bond, Ocampo said.
Energy Secretary Carlos Jericho Petilla welcomed the TRO’s extension, but he expressed hope that a permanent solution would be made on the disputed rate hike.
“From a consumers’ point of view, it is a welcome development,” he said.
However, Petilla expressed concerns on the TRO’s impact on power generators’ financial position.
“We will leave it to PEMC on how to distribute it (among the power generators),” he said.
The P2-billion bond is not enough to cover Meralco’s unpaid obligations to power firms, which amount to roughly P6.5 billion for December only, he added.
Petilla expressed hope that the ERC and the SC would decide on the matter soon to avoid uncertainty.
“The solution is to decide on the proper amount as quickly as possible,” he said.
Petilla said he does not expect power outages to happen despite the extension of the TRO.
“Meralco and the generation companies will have to sit down on the matter.” – Iris Gonzales source
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