Business Mirror
10 Apr 2014
Written by Jovee Marie N. dela Cruz
LAWMAKERS from Bayan Muna party-list and members of different groups on Thursday filed before the Energy Regulatory Commission (ERC) a motion to intervene against the power-rate increases announced by Manila Electric Co. (Meralco) for April, May and June.
In their motion, Bayan Muna Reps. Neri Colmenares and Carlos Isagani Zarate, together with former Bayan Muna Rep. Teddy Casiño, Bayan Secretary-General Renato Reyes, Agham Chairman Dr. Giovanni Tapang, Kilusang Mayo Uno Chairman Elmer Labog and Makabayan Manila Chairman Francisco Mariazeta III, asked the ERC to reject the rate increases proposed by Meralco.
“Interveners would like to stress that this Honorable Commission should not grant a rate increase from transactions brought about by not only through the manipulation of market price in WESM [Wholesale Electricity Spot Market] but also in the manipulation of the supply situation through various schemes, such as under offering or artificial plant shutdowns," the motion said.
“Notably, even Meralco is convinced that there were ‘gross violation of the WESM Rules committed by certain generating plants,’ which fact was also expressly acknowledged by [ERC] in its March 3, 2014, order, wherein it declared, among others, that the ‘prices in WESM during the months of November and December 2013 could not qualify as reasonable, rational and competitive,’” it said.
The groups also asked the ERC to charge those guilty of manipulating the situation and market price and should be made to shoulder whatever cost resulting from “their unjust, unlawful or illegal acts,” saying they will just be encouraged to continue with the habit of manipulation because they know that in case they are caught, they could still recover the true or actual costs of electricity based on the so-called regulated prices that will be declared by the ERC.
“This Honorable Commission [should] identify those who were parties to the acts which resulted in prices being considered as unjust, unreasonable, irrational and uncompetitive and should make said parties shoulder the cost of their unjust and illegal acts,” it said.
“Thus, it is about time that this habit or practice of those guilty of manipulating the supply situation and market price of electricity should be stopped. In this regards, Meralco’s application should be dismissed outright,” the motion said.
Earlier, Meralco submitted to the ERC its computation for generation charge in April.
For April, Meralco power rates will go up by P0.89 per kilowatt-hour, which translates to a net increase of P178.91 for households with 200-kWh consumption; P268.36 for 300 kWh; P357.82 for 400 kWh; and P447.28 for 500 kWh.
The Meralco said the rate increase was mainly due to a P0.69-per-kWh increase in the generation charge, or cost of power sold by power producers to Meralco, from P5.21 per kWh in March to P5.90 per kWh this month.
It said the increase was primarily driven by the significant spike in the WESM prices to P21.59 per kWh during the March supply month from P4.90 per kWh the previous month, for an increase of P16.69 per kWh.
Meralco informed the ERC that generation charge in May and June could increase to P7.69 per kWh and P6.57 per kWh, respectively.
Moreover, Colmenares said the ERC should fulfill their regulatory mandate in their investigation for the November-to-December increase, saying considering that the supply situation during the Malampaya shutdown is worse than now, there is no reason for this latest price increase.
Last year several power plants have implemented successive unplanned shutdown following the scheduled maintenance outage of Malampaya natural gas plant. Meralco said the power rates hike in November and December were triggered by the shutdown.
The lawmaker also said these power issues could have been solved earlier in this administration if only it has a comprehensive energy plan for the country and constructed more power plants from the start through the P137-billion Malampaya funds. source
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