Business World Online
Posted on February 18, 2014 11:14:33 PM
IMPLEMENTATION by Manila Electric Co. (Meralco) of its hefty power rate increase has been postponed further after the Supreme Court yesterday extended the temporary restraining order (TRO) against the hike for 60 more days.
Acting on an 11-page motion lawmakers filed on Feb. 12, the Supreme Court -- in full session -- extended the stay order against Meralco’s P4.15 per-kilowatt-hour (kWh) increase until April 22, spokesperson Theodore O. Te said in a press briefing yesterday.
The first 60-day TRO, issued on Dec. 23 last year, was set to expire this Friday, Feb. 21. The stay order covers the P4.15/kWh increase of Meralco for the November supply month, implementation of which was supposed to be staggered in December, February and March.
The Supreme Court also yesterday slapped fresh TROs “effective immediately and for a period ending Apr. 22” stopping generating companies (gencos), the National Grid Corporation of the Philippines and Wholesale Electricity Spot Market operator Philippine Electricity Market Corp. (PEMC) “from demanding and collecting the deferred amounts representing the affected costs based on the matters raised in Meralco’s Dec. 5, 2013 letter.” Meralco asked the Energy Regulatory Commission (ERC) in that letter to approve the phased implementation of the rate hike covering the November supply month.
Generating firms covered were identified as: Masinloc Power Partners Company, Ltd “c/o AES Philippines”; San Miguel Energy Corp.; South Premiere Power Corp.; and First Gas Power Corp.
Sought for comment, Meralco First Vice-President and Legal Head William S. Pamintuan said in a statement: “Though we have not received the official order from the Supreme Court yet on the extension of the TRO covering the December 2013 rates, Meralco will abide by the decision of the SC and will continue to discuss with the generation companies, PEMC, DoE (Department of Energy), ERC, consumer groups and other stakeholders regarding this issue.”
“Meralco is still hopeful that this case... will be resolved at the soonest possible time to the satisfaction of all stakeholders.”
Energy Secretary Carlos Jericho L. Petilla, for his part, said: “In consumers’ point of view, that’s good because we are not yet sure if the price hike is really the actual cost that needs to be collected from them.”
“I agree with the extension. My worry is on generators who will still have a problem on how to pay for the fuel. I will still have to find out what will happen,” Mr. Petilla told reporters on the sidelines of a dialogue among energy stockholders on possible amendments to Republic Act No. 9136, or the Electric Power Industry Reform Act, held at SMX Convention Center in Pasay City.
“I think at this time, there is still no clear reason to lift the TRO. So the solution here is to decide on the proper amount of power rate as quickly as anybody can.”
He also assured there will be no brownouts in Meralco’s franchise area despite the TRO extension. “There will be no brownouts because we’re already past the supply and billing month covered by the TRO. This means that gencos can still collect from Meralco but with the extended TRO, Meralco and the gencos will have to sit down and negotiate again.”
PEMC President Melinda L. Ocampo refused to comment, saying: “We don’t have a copy yet. We’ll try to secure a copy and see how we will be affected but right now, we cannot comment yet. But we will follow the SC’s order.”
NGCP Spokesperon Cynthia P. Alabanza said in a text message: “We trust in the system and will let the legal process take its course.”
Victor B. Santos, senior first vice-president of First Gas parent First Gen Corp., said in a statement: “We will be in a better position to respond once we get a copy of the new Supreme Court order.”
The Supreme Court, on Feb. 11, ended oral arguments on the rate hike issue after which Chief Justice Ma. Lourdes P.A. Sereno ordered parties to submit in 15 days their memoranda to address issues raised during the hearing.
Meralco shares yesterday closed at P263, up P7 or 2.73% from Monday’s P256 finish.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
The first 60-day TRO, issued on Dec. 23 last year, was set to expire this Friday, Feb. 21. The stay order covers the P4.15/kWh increase of Meralco for the November supply month, implementation of which was supposed to be staggered in December, February and March.
The Supreme Court also yesterday slapped fresh TROs “effective immediately and for a period ending Apr. 22” stopping generating companies (gencos), the National Grid Corporation of the Philippines and Wholesale Electricity Spot Market operator Philippine Electricity Market Corp. (PEMC) “from demanding and collecting the deferred amounts representing the affected costs based on the matters raised in Meralco’s Dec. 5, 2013 letter.” Meralco asked the Energy Regulatory Commission (ERC) in that letter to approve the phased implementation of the rate hike covering the November supply month.
Generating firms covered were identified as: Masinloc Power Partners Company, Ltd “c/o AES Philippines”; San Miguel Energy Corp.; South Premiere Power Corp.; and First Gas Power Corp.
Sought for comment, Meralco First Vice-President and Legal Head William S. Pamintuan said in a statement: “Though we have not received the official order from the Supreme Court yet on the extension of the TRO covering the December 2013 rates, Meralco will abide by the decision of the SC and will continue to discuss with the generation companies, PEMC, DoE (Department of Energy), ERC, consumer groups and other stakeholders regarding this issue.”
“Meralco is still hopeful that this case... will be resolved at the soonest possible time to the satisfaction of all stakeholders.”
Energy Secretary Carlos Jericho L. Petilla, for his part, said: “In consumers’ point of view, that’s good because we are not yet sure if the price hike is really the actual cost that needs to be collected from them.”
“I agree with the extension. My worry is on generators who will still have a problem on how to pay for the fuel. I will still have to find out what will happen,” Mr. Petilla told reporters on the sidelines of a dialogue among energy stockholders on possible amendments to Republic Act No. 9136, or the Electric Power Industry Reform Act, held at SMX Convention Center in Pasay City.
“I think at this time, there is still no clear reason to lift the TRO. So the solution here is to decide on the proper amount of power rate as quickly as anybody can.”
He also assured there will be no brownouts in Meralco’s franchise area despite the TRO extension. “There will be no brownouts because we’re already past the supply and billing month covered by the TRO. This means that gencos can still collect from Meralco but with the extended TRO, Meralco and the gencos will have to sit down and negotiate again.”
PEMC President Melinda L. Ocampo refused to comment, saying: “We don’t have a copy yet. We’ll try to secure a copy and see how we will be affected but right now, we cannot comment yet. But we will follow the SC’s order.”
NGCP Spokesperon Cynthia P. Alabanza said in a text message: “We trust in the system and will let the legal process take its course.”
Victor B. Santos, senior first vice-president of First Gas parent First Gen Corp., said in a statement: “We will be in a better position to respond once we get a copy of the new Supreme Court order.”
The Supreme Court, on Feb. 11, ended oral arguments on the rate hike issue after which Chief Justice Ma. Lourdes P.A. Sereno ordered parties to submit in 15 days their memoranda to address issues raised during the hearing.
Meralco shares yesterday closed at P263, up P7 or 2.73% from Monday’s P256 finish.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
No comments:
Post a Comment