Tuesday, December 24, 2013

2 days before Christmas, SC issues TRO vs Meralco power rate hike


InterAksyon.com means BUSINESS
MANILA, PhilippinesThe Supreme Court on Monday issued a temporary restraining order stopping the Manila Electric Company (Meralco) from implementing a power rate increase for the next 60 days.

Two days before Christmas, the high court enjoined Meralco and the Energy Regulatory Commission (ERC) from implementing the unprecedented P4.15 per kilowatt-hour increase in power rates "effective immediately." 

The high tribunal set on January 21, 2014 the oral arguments on the petitions filed against Meralco and ERC.

House members of the Makabayan bloc earlier filed a petition for certiorari and prohibition with a prayer for TRO against the increase. 

In their petition, the lawmakers accused the ERC of committing "grave abuse of discretion amounting to lack or excess of jurisdiction in approving staggered huge power rate increases on the basis of Meralco's unverified letter proposal and in disregarding of due process requirement under the law." 

The second petition was filed by the National Association of Electricity Consumers for Reforms, Federation of Village Associations, and Federation of Las Pinas Homeowners Association.

'Relief for the people'
Bayan Muna Rep. Neri Colmenares said the decision was "a welcome relief for the people."
"We thank the Supreme Court for granting the request of petitioners and the people for a TRO as a timely Christmas gift for the people," he said. 

Sen. Antonio Trillanes IV said the decision "is a victory for all." But he said actions must be sustained against the power rate hike as the Senate continues its investigation on whether there was collussion among power generators that led to the big time increase. 

Sen. Vicente "Tito" Sotto III also welcomed the ruling, saying it's a good Christmas gift for the people and a good way to start the New Year. 

'Slap to ERC's pathetic stand' 
Meanwhile, the labor group Partido ng Manggagawa (PM)  said the ruling was a “really a good break from the power ‘Grinches’ at Meralco and Gencos (generation companies) whose organized fraud could have stolen the people’s joyful Christmas celebration,”
PM spokesperson Wilson Fortaleza said the TRO  “is a slap to the pathetic stand of the ERC, the Department of Energy, and the Palace which found the sharp spike in power cost regular under the policy regime of EPIRA ( Electric Power Industry Reform Act).”

Fortaleza said  the ruling had also bolstered their cause in petitioning the government to conduct a thorough investigation on the reported collusion among power firms that triggered the spike of electricity prices traded at the Wholesale Electricity Spot Market. 

Last December 16, Fortaleza’s group in PM-Nagkaisa together with partylist representatives from Akbayan and TUCP, Freedom from Debt Coalition, and economist Maitet Diokno of Center for Power Issues and Initiatives formally asked the Department of Justice’s Office for Competition to conduct a probe on the collusion.

 “We believe that since the enactment of EPIRA, market abuse has become a repeated industry offense. And we want an end to this fraud,” said Fortaleza.

Manuel V. Pangilinan is the chairperson of Meralco and TV5, whose online news portal is InterAksyon.com.  

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