ERC Files A Petition To Block TRO In Favor Of San Miguel Corp Power Unit

The Energy Regulatory Commission (ERC) has filed a petition with the Court of Appeals (CA) to block the issuance of a temporary restraining order (TRO) in favor of a San Miguel Corporation (SMC) power unit.

In November, the CA issued a TRO in favor of South Premiere Power Corp. (SPPC), a unit of SMC, which seeks to temporarily suspend the power supply agreement with Meralco for 60 days.

SPPC filed a petition after the ERC denied their plea for a price increase in power rates due to fuel price surges. However, the ERC said the regulatory body ruled that the agreed price has been set and the grounds for an increase cannot be considered as exceptions to allow for price adjustment.

ERC Chair Monalisa Dimalanta said consumers can expect power rate hikes in the first quarter of 2023.

“But if Meralco succeeds in asking SMC plants to cover the price difference between the original contract price and the current electricity prices sourced from the spot market and emergency power supply agreements, then there is a chance that price increases will be minimal”, Dimalanta said.

Moreover, the continuous increase in power rates moved electricity consumers to demand representation in issues involving power rates.

Kuryente.org suggests consultations with consumer groups during the review of power supply agreements that will affect electricity rates. The org proposes the creation of an advisory council under the office of the chairperson or an additional 2 commissioners representing consumers in the current 5-member commission.

Dimalanta says consumer groups will need to file a formal petition to create an amendment to the EPIRA law. 

Source: ABS-CBN