British traders air concern over SC ruling on Meralco rate bid

The British Chamber of Commerce (BCC) noted with increasing concern yesterday the growing tendency for the Supreme Court to interfere with the regulatory process associated with the energy sector, citing as an example the high court’s decision regarding Meralco’s petition for a rate adjustment before the Energy Regulatory Commission (ERC).

"Regulatory authorities clearly have a responsibility to consumers but it is critical that they also are allowed to discharge their responsibilities to industry players thereby ensuring a viable long-term energy sector," the BCC said in a statement.

The failure to attract material foreign interest in Transco is hard evidence of how such political risk in the Philippines is viewed externally, the BCC added.

BCC chairman Geoffrey Short expressed great concern at the most recent SC move coming soon after its critical decision regarding Meralco repayment to customers.

Corporate members of the BCC include Shell and BG Philippines who are both major investors in the Malampaya gas-to-power project. The Malampaya gas project utilizes the country’s natural gas as fuel for electricity.

The Malampaya gas project was envisioned by the Philippine government as a major step towards the development of its indigenous fuel resources, thereby, lessening the country’s dependence on imported fuels.