Longer TRO sought on rate hike

By: 11 years ago

AFP FILE PHOTO

MANILA, Philippines—The militant party-list bloc in the House of Representatives on Tuesday asked the Supreme Court to extend indefinitely the 60-day temporary restraining order (TRO) it had issued which stopped the Manila Electric Co. (Meralco) and the power-generating companies (gencos) from collecting the P4.15 kilowatt-hour increase in the generation charge.

The petitioners, the so-called Makabayan bloc in the House representing Bayan Muna, Gabriela Women’s Party, Act Teachers and the Kabataan party-list groups, are seeking a second extension of the high court order issued on Feb. 18 which expires on April 22.

If granted, it will be the third time the high court shall have issued a TRO against Meralco’s proposed generation rate increase of P4.15 kWh.

The Makabayan bloc and the National Association of Electricity Consumers for Reforms had filed petitions in the high court questioning the legality of the Meralco price hike amid allegations the distribution utility had colluded with the gencos to cause the price spike in the electricity spot market.

Initially, the high court issued a 60-day TRO on Dec. 22 last year but extended it for another 60 days on Feb. 18.

Gencos blocked too

But in the same Feb. 18 resolution, the high court also stopped gencos like Masinloc Power Partners Co. care of AES Philippines, San Miguel Energy Corp., South Premiere Power Corp., First Gas Power Corp. and the National Grid Corp., as well the Philippine Electricity Market Corp., from demanding and collecting from Meralco the deferred generation rate increase which represents the cost of the power that they supply Meralco.

“The TROs, if not extended by this honorable court will leave the petitioners, together with millions of Meralco’s captive market unprotected, as respondents will be free to charge the consumers the P4.15-kWh rate increase despite prima facie findings of collusion, anticompetitive behavior and abuse of market power prevailing in the market during the period questioned and despite the pendency of these consolidated cases. This circumstance will result in grave and irreparable injury to petitioners, as well as millions of Meralco consumers,” the Makabayan bloc said in its petition.

The group said that Meralco and the gencos would not be deprived of their profits by another TRO, “but will merely deprive them of huge windfall profits that is a product of illegal collusion, anticompetitive behavior and abuse of market power.”

It reiterated its stand that the high court should continue restraining the imposition of any amount such as the reported recalculated generation charge as this was “injurious” to petitioners and the people and rewarded the respondents and those that caused these injuries.

The high court held oral arguments on the Meralco price hike petitions early this year but has yet to issue a ruling. Christine Avendaño