SC seeks WESM deals explanation
The consumer group has earlier submitted a petition for mandamus and injunction against the ERC, Meralco, and the IEMOP, the operator of the Wholesale Electricity Spot Market
Daily TribuneThe consumer group has earlier submitted a petition for mandamus and injunction against the ERC, Meralco, and the IEMOP, the operator of the Wholesale Electricity Spot Market
The Supreme Court (SC) has directed the Manila Electric Company (Meralco), the Energy Regulatory Commission (ERC), and the Independent Electricity Market Operator of the Philippines (IEMOP) to look into the allegations raised by a consumer group.
The complaint centers on Meralco’s alleged unauthorized electricity purchases from the Wholesale Electricity Spot Market (WESM).
The high bench said “The Court, without necessarily giving due course thereto, resolves to require respondents to file a comment thereon, not a motion to dismiss, within a non-extendible period of twenty days from notice, and to defer action on the prayer for issuance of writs of mandamus and preliminary injunction.”
The consumer group has earlier submitted a petition for mandamus and injunction against the ERC, Meralco, and the IEMOP, the operator of the Wholesale Electricity Spot Market.
Trading halt sought
It aimed to halt Meralco’s trading and speculation in the WESM and to urge the ERC to fulfill its regulatory role and address violations of the Electric Power Industry Reform Act (EPIRA).
After the ERC failed to act on its complaint, the consumer group went to the SC on 15 June 2022, requesting the ERC to audit Meralco’s WESM purchases and direct Meralco to refund consumers the generation charges in excess of the average rate charged by more than 10 ERC-approved power supply agreements.
The ERC has abdicated its duty to protect public interest and must compel Meralco to stop its purchases at the spot market as Meralco’s spot market purchases are illegal, the complaint raised.
Sourcing power, Meralco argued, from the WESM has enabled it to ensure continuous and reliable supply at reasonable costs, ultimately benefiting its customers.
Citing Sections 30 and 45 (c) of the EPIRA of 2001, Meralco pointed out that distribution utilities are permitted to source from bilateral contracts and the spot market, which are essential components of meeting their least cost supply mandate.
