Consumer group: TRO on power rate issue is economic sabotage
The more pressing question is why are we letting the judiciary disrupt the mechanisms put in place to protect consumers
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Daily TribuneThe more pressing question is why are we letting the judiciary disrupt the mechanisms put in place to protect consumers
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Power for People Coalition made up of consumers, workers and multi-sectoral groups led by Leody de Guzman, Gerry Arances. Flora Santos and Atty. Aaron Florosa, slammed San Miguel Corporation’s bid to force high electricity rates onto consumers. They submitted a letter to President Ferdinand Marcos Jr. urging him to exercise his power to prevent an impending rate increase. | PHOTOGRAPH BY ANALY LABOR FOR THE DAILY TRIBUNE @tribunephl_ana
Various groups yesterday branded as economic sabotage the Court of Appeals' temporary restraining order which stopped the Energy Regulatory Commission's order rejecting the electricity price hike petition of San Miguel Corp.
The groups wrote President Ferdinand "Bongbong" Marcos expressing dismay over the CA ruling.
Power for People convenor Gerry Arances said much has been said about the President not meddling in the court's decision but "the more pressing question is why are we letting the judiciary disrupt the mechanisms put in place to protect consumers."
The ERC decision dismissing the SMC rate increase petition sought to uphold the power supply agreement which was based on fixed pricing that does not allow cost increases to be passed on to consumers.
"The power supply agreements with straight pricing and the ERC decision shielded ordinary electric consumers from bearing the brunt of the energy crisis," Arances said.
He added the President worrying over the court decision on its 'extremely deleterious effect' on power prices indicated its potential impact on consumers.
"We say no thanks to this gift that San Miguel has bequeathed to ordinary Filipinos in the form of higher electricity bills," Arances said.
"This overturned the people's victory in the Energy Regulatory Commission, which had earlier denied San Miguel's motion to pass on charges. Once again, consumers who can barely afford to keep their Christmas lights on fall victim to the ploys of SMC," the letter from the Power for People Coalition, Freedom from Debt Coalition, Diocesan Social Action Center of Calapan and labor group Sanlakas read.
The letter was sent after the President said the SMC price hike bid is a prime concern.
He made it plain that the CA should reconsider the TRO and if not, the regulating agency must come up with a decision to postpone or implement gradually the price increases stemming from the court order.
"The TRO which the CA handed the power supply agreement of San Miguel and Meralco, that's my worry," President Marcos said.
The letter added: "We welcome your appeal for the Court of Appeals to reconsider its decision. Ordinary Filipinos also deserve a merry Christmas, even if they are not executives of San Miguel. You made your uneasiness over price increases heard, seeking to stagger any increase, if unavoidable."
"We write to you, Mr. President, to give you the opportunity to give us a merry, well-lit Christmas because there is a way to avoid price increases completely. In fact, we can even roll back prices, and it is within your power to do so," it said.
The TRO, which is in effect for 60 days, suspended the ERC's denial of the rate hike petition filed by SMC Global Power subsidiary South Premier Power Corp. and also suspends the PSA with SPPC which runs the Ilijan natural gas plant in Batangas.
33 disallowed PSAs
"If there is anything that should be looked upon with great scrutiny by any court, it is the fact that SMC has 33 active PSAs which have been voided back in 2019 by the Supreme Court but remain active for some reason. How come we are turning a blind eye to corporations' missteps and find it so easy to place the burden on ordinary people?" Arances said.
"SMC, as you know, is intent on passing on at least part of its alleged P15 billion in losses from higher fossil fuel costs to the Filipino public in the form of higher electricity rates," the letter read.
It lamented that SMC secured a TRO from the Court of Appeals which voided a power supply agreement "it had earlier sought and signed, committing to fixed pricing of its own free will."
"All these PSAs are contributing to record high electricity prices, including in your native Ilocos Norte, wherein generation rates rose by nearly 200 percent from 2021 to 2022," it said.
The groups said SMC power plants are far from reliable, "as they often break down and cause red alerts in the grid, as we saw last week."
