Meralco asks CA to lift stay order
It also asked the court to deny SPPC’s application for a writ of a preliminary injunction
Daily TribuneIt also asked the court to deny SPPC’s application for a writ of a preliminary injunction
The former co-petitioner of San Miguel Corp. for a price increase is now on the other side of the fence as Manila Electric Co. joined the Energy Regulatory Commission in urging the Court of Appeals to lift the Temporary Restraining Order favoring SMC unit South Premiere Power Corporation.
It also asked the court to deny SPPC's application for a writ of a preliminary injunction.
Meralco filed a motion on 19 December to offset the disruption of basic and essential services rendered by SPPC because of the TRO, which the company said was detrimental to millions of Filipinos.
The company said, "Honorable Court should lift the TRO and direct for the parties to continuously implement the PSA to bring back the scenario that would serve and protect the public from the unnecessary burden of increased electricity costs."
ERC previously asked the Office of the Solicitor General to lift the CA-issued TRO that allowed the PSA suspension.
Likewise, Solicitor General Menardo Guevarra also asked the appellate court to lift the order.
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 opposing the injunctive relief sought by SPPC, Meralco said it intends "to protect the public and per its obligation to provide its customers with the least cost of electricity."
Meralco reiterated that SPPC has "no clear legal right to the grant of the TRO and issuance of the WPI since its right to the price adjustment is in contention and the principal issue of the main case."
Likewise, it reiterated that SPPC "failed to demonstrate that it will suffer grave and irreparable injury if the injunctive reliefs are not granted since the "damage" claimed by SPPC."
"By its admission, is measurable or capable of arithmetic calculation for the period covered by the application for a price adjustment or from January to May 2022."
The TRO led to the cessation of the 670 MW supply that SPPC was obligated to deliver under its Power Supply Agreement, which has a lower rate compared to the Wholesale Electricity Spot Market and the Emergency Power Supply Agreement where Meralco currently sources the replacement power.
Under Republic Act 9136 or the Electric Power Industry Reform Act of 2001, the supply sector is a business affected by public interest. Therefore, SPPC's rights and interests "must give way to serve a higher end for the interest of the public."
ESPA signed
Last week, Meralco signed an emergency power supply agreement with AboitizPower's GNPower Dinginin Ltd. for the supply of 300 megawatts of baseload capacity.
The emergency PSA partially replaces the 670 MW capacity under its agreement with sppc.
Without an emergency PSA, Pangilinan -led power distributors were forced to source power directly from the Wholesale Electricity Spot Market, which is normally more expensive.
Spot market operator Independent Electricity Market Operator of the Philippines said the spot price in November registered an average of P8.53 per kWh or around 7.48 percent lower than the previous month's P9.22 per kWh record.
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.
