TRO lifting way out of power rate hike
‘Since it is only suspended, the PSA can be reinstated depending on how the CA will decide on our Motion to Lift TRO and ultimately how they decide on the case.’
Daily Tribune‘Since it is only suspended, the PSA can be reinstated depending on how the CA will decide on our Motion to Lift TRO and ultimately how they decide on the case.’
The Energy Regulatory Commission said the suspended 670-megawatt Power Supply Agreement between the Manila Electric Co. and South Premiere Power Corp. may be reinstated to save consumers from the burden of paying additional pesos for their monthly electricity bills.
In a text message to the Daily Tribune on Friday, ERC chairperson Atty. Monalisa Dimalanta reiterated that the PSA is only suspended and not entirely terminated.
It means that the Court of Appeals, if it will heed the appeal of the Office of the Solicitor General and President Ferdinand R. Marcos Jr., lifts the recently issued Temporary Restraining Order that allowed the PSA suspension.
"Since it is only suspended, the PSA can be reinstated depending on how the CA will decide on our Motion to Lift TRO and ultimately how they decide on the case," Dimalanta said.
"At this point, for this particular contract, sanctions will depend on how the CA will rule since the matter has already been referred by SPPC to the CA," she added.
SolGen wants TRO lifted
Just like the president, Solicitor General Menardo Guevarra also asked the appellate court to lift the order.
"Yesterday 7 December, the OSG entered its appearance and filed a motion to lift the TRO issued by the court of appeals suspending the PSA between the SPPC and Meralco," Guevarra confirmed in a one-paragraph reply to the query.
To recall, the President himself already publicly asked the CA to reconsider the TRO shortly after the CA's Fourteenth Division issued the order in favor of SPPC, a San Miguel subsidiary, with a 60-day effectivity from service on the respondents.
In a statement, the President raised the possible adverse effects of the CA's move to issue the TRO.
"The implementation of the PSA between Meralco and San Miguel, it is unfortunate that this has happened; it will cause further dislocations and possible price increase for power," Marcos said, noting the TRO was against the PSA.
"We hope that the CA will reconsider. And include in their deliberations the extremely deleterious effect this will have on power prices for ordinary Filipinos," he added.
The SPPC allegedly filed a petition hoping the CA will grant the rate petition "without prejudice to any further requests for price adjustments for June 2022 onwards."
Meralco eyes EPSA completion next week
In another related development, Meralco Head of Utility Economics Larry Fernandez said the company expects to iron out its emergency procurement of power supply from the Wholesale Electricity Spot Market next week to make up for the lost supply in its system.
Fernandez said Meralco prioritizes ensuring stable, reliable, and adequate supply for all our customers.
The Department of Energy already issued Meralco a Certificate of Exemption to procure an emergency power supply from the Spot Market to cover the 670 MW supply lost from its system due to the effectiveness of the PSA suspension.
According to the ERC, the PSA suspension's instantaneous effect exposes approximately 7.5 million registered Meralco consumers in Metro Manila and in Central Luzon and Calabarzon to higher electricity prices.
The regulatory body said the fixed price PSA of Meralco with SPPC covers 670MW of supply, which, along with the other fixed price PSAs, has shielded Meralco consumers for the past several months from the volatility of costs from the Spot Market and automatic fuel pass-through PSAs.
The ERC said the cessation of the PSA effectively set aside the required proper observance of the terms of the PSA.
