Power generators block ERC order on WESM

MANILA, Philippines - Twelve power generation companies have blocked the order of the Energy Regulatory Commission (ERC) voiding the November and December 2013 prices at the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.

ERC executive director Saturnino Juan said the commission is still looking into the respective motions filed by the different power generators on the ERC’s March 3 order voiding the November and December 2013 rates at the WESM.

 “The motions for reconsideration have been submitted for resolution,” he said.

The 12 companies are AP Renewables Inc.,  SN Aboitiz Power-Magat and SN Aboitiz Power-Benguet,  Therma Mobile, Inc.  TLI – Therma Luzon, Inc., San Miguel Energy Corp., South Premier Power Corp., Strategic Power Development Corp. & SMC Powergen Inc. and Petron Corp.

Masinloc Power Partners Co. Ltd., 1590 Energy Corp.,  Panasia Energy Inc.,  Sem Calaca Power Corp.,  Team Philippines Energy Corp. and Northwind Power Development Corp.also filed their respective motions.

The ERC issued an order voiding the November and December 2013 rates at the electricity spot market, citing market failure. It ordered market operator Philippine Electricity Market Corp. (PEMC) to issue recalculated rates.

PEMC has yet to issue the recalculated rates for the December 2013 bill as it is still subject of a case at the Supreme Court.

Manila Electric Co. (Meralco), the country’s biggest power distributor, said that based on the company’s estimates, the generation charge for the month of December will go up by only P0.2715 per kilowatt hour from the original P3.44 per kwh based on ERC’s own recalculated rates.

This means the generation charge for the December bill will be P5.9388 per kwh instead of the original bill of P9.10 per kwh, which had been the subject of a temporary restraining order (TRO) issued by the Supreme Court on December 23, 2013 and which was extended indefinitely.

The Supreme Court, meanwhile, has yet to hand down its final ruling on the petition filed by militant groups seeking to void the December 2013 generation charge of P9.10 per kwh, more than six months since the High Court issued its TRO.