Meralco warned of gov't takeover amid power rate hikes

MANILA, Philippines - Senators on Thursday chided energy executives for the unprecedented power rate hike of the Manila Electric Company (Meralco).

During the resumption of the Senate probe on the Meralco rate increase, Senator Antonio Trillanes IV assailed the company's officials for passing the burden to consumers.

"You are trying to free yourself from the responsibility dito sa pagtaas," Trillanes said during the televised Senate probe.

The senator warned Meralco's officials present at the Senate hearing that another power rate increase will further infuriate the public and will prompt policy-makers to take action.

He suggested that the national government may take over the country's power distributors, similar to the situation during the Martial Law years.

"Do not underestimate the wrath of the people," Trillanes said. "Baka dumating tayo sa ganoon na masyadong mapressure ang mga politiko na i-nationalize na lang 'yung distribution."

"They (politicians) may do something drastic. So do not tempt [them]," Trillanes added.

Trillanes said ideally, the private sector is more efficient in operating businesses, but in this case, the Meralco officials "are not displaying any sign of efficiency."

"Wag kayo basta-basta magpasa," he said. "Sinasabi ko lang na magkaroon kayo ng konsensya, alam niyo yung pwede niyo sanang gawin to reduce the prices."

Oscar Reyes, Meralco President, told Trillanes that they are "very conscious" of their consumers' interest and of the impact of the power hikes.

But when asked by Trillanes if there was an error on their part, Reyes said "Sa amin, wala."

He insisted that their power rate increase is due to the simultaneous maintenance shutdowns of major baseload power plants and of the Malampaya facility.

The energy executive described the situation as an "isolated" case.

"It is a non-occuring event," he said.

Meralco, the country's largest power distributor, implemented a staggered P4.15 per kilowatt per hour increase in 2013 that was approved by the Energy Regulatory Commission (ERC).

The power hike was later stopped by a 60-day temporary restraining order issued by the Supreme Court.

'ERC a rubberstamp'

Senators also grilled government energy officials over the unabated power rate hikes, with Trillanes calling the ERC as the "biggest culprit."

He said the agency have enough powers under the law to stop the price increase, but it chose to "look the other way."

"Matindi na ang galit ng mga consumers," Trillanes said. "Kayo ultimately ang may kasalanan kasi kayo dapat ang nagbabantay dito."

Trillanes said if he has the authority, he will "kick out" all members of the ERC and of the Power Sector Assets and Liabilities Management Corp.

"You're fortunate that the President (Aquino) has the stomach to tolerate such incompetence," he said.

ERC chair Zenaida Ducut dismissed Trillanes' claim that their agency is a "rubberstamp."