Power sector regulator Energy Regulatory Commission was urged on Thursday to dismiss the motions for a power rate hike filed by SMC Global Power Holdings Corporation for its two generation units that had accumulated losses due to rising fuel costs and supply restrictions from Malampaya.

"The ERC has a golden opportunity to show what it is made of under the new administration," Power for People Coalition Convenor Gerry Arances said. "Will ERC uphold the rule of law and consumer welfare and dismiss this motion of SMC?

"Will SMC be penalized for what is essentially cheating when they bid low and then move to terminate its contract when they are not able to fulfill it? Or will they be the same old ERC that will side with energy companies and let SMC get fat profits on the back of consumer misery? Only the ERC itself can answer that," he added.

The consumer group, likewise, decried the SMC's warning to terminate the PSAs with Meralco if ERC fails to act on the joint petition, which will cause electricity prices to go by as much as 30 percent starting in October.

ERC called for an en banc clarificatory hearing on the petition on Tuesday, a nearly unprecedented move, and the second clarificatory hearing on the matter since the first one held on 9 June on the motions for price adjustment.

SMCGP has asked the regulator to increase the rates they charge on electricity due to its P15 billion losses incurred by the latter in the operations of its 1,200-megawatt Sual plant and the 1,200 MW Ilijan power plant.

"The only thing that this clarificatory hearing should clear is that there is no reason to grant the request of SMC for higher power rates from its Ilijan and Sual plants. From the words of Mr. Ramon Ang himself, they chose the fuel and the rate at which they bid with. They should bear the consequences of their choices," according to Arances.

Protect consumer welfare

Arances said the ERC should step up and usher in a new leadership style and side with consumers.

During the ERC hearing, lawyer and former senatorial candidate Luke Espiritu represented the Center for Energy, Ecology, and Development, the Philippine Movement for Climate Justice, and Sanlakas, who are all member organizations of P4P.

"SMC is seeking to stampede the ERC into making a rash decision that will victimize consumers. They claim losses but have not provided any documentation of financial unviability [sic], only citing high coal prices and Malampaya gas restrictions," Espiritu said.

"They threaten to terminate their power supply agreements, for which they should be penalized. They want new prices while completely glossing over the fact that they were the ones who made their computations on what price to bid," he added.

In case the Ramon Ang-led company pushes through with its plans, P4P said Meralco should ensure that it will not rely on coal and gas to make up for the lost supply and instead pick straight energy pricing which provides more stable pricing amidst global shocks.

"Will Meralco opt-in to the Green Energy Auction Program which is cheaper and offers straight pricing on renewable energy? These are questions that must all be taken into account," Arances said.