‘Bring CA ruling on power rate hikes to SC’

MANILA, Philippines — An official of the House of Representatives called on the Energy Regulatory Commission (ERC) to elevate to the Supreme Court (SC) a December 2023 Court of Appeals (CA) ruling that could pave the way for higher power rates to the detriment of consumers. 

Rep. Dan Fernandez, vice chairman of the House committee on energy, also wrote the Office of the Solicitor General (OSG) – the designated government counsel in cases brought before the appellate courts – to appeal the case in ERC’s behalf. 

“While demand for power supply is acute at this time, we also have the responsibility to protect consumers against price gouging. There are ways to meet the demand that will not unduly and unreasonably raise power rates,” he said.

In a letter received by the OSG on May 2, he asked Solicitor General Menardo Guevarra to elevate the case to the high tribunal, as it involved the collection of higher power rates that would further burden consumers already paying one of the world’s highest electricity bills.

The congressman of the lone district of Sta. Rosa also urged the ERC to “withhold action” on new power deals until the issue is resolved.

He also urged the ERC to closely examine and withhold approval of new power supply agreements (PSAs) between the Manila Electric Co. (Meralco) and the power generation companies involved in the CA case.

In his letter to the OSG, Fernandez pointed out that two power plants owned by one of the country’s largest conglomerates San Miguel Corp. (SMC), through Ilijan (gas) and Sual (coal), is “seeking to supply emergency power to Meralco.”

The PSA that the two plants entered with Meralco have been terminated following the ERC ruling last year that disallowed Meralco’s and the SMC plants’ petition for power rate increase.

“Indeed, the termination of the PSAs has apparently allowed llijan to bid again for Meralco’s long-term power requirements,” Fernandez stated in his letter to OSG chief Guevara.

“This is of major concern to my constituents and all other Filipinos, as it seems that San Miguel has simply substituted a contract that paid it cheaply for electricity for exactly the same contract, but this time with a much higher price,” a portion of the letter read. 

Fernandez said it was reported in January this year that the ERC would bring the case it lost in the CA to the SC. 

“However, it is now May 2024 – more than four months from the CA decision – and I have not heard whether the ERC or the Office of the Solicitor General has filed the needed appeal or petition,” Fernandez noted.

He said he is of the opinion that the ERC cannot just approve another PSA between SMC and Meralco without filing an appeal of the CA’s December 2023 ruling with the SC for final judgment.

“I strongly urge the ERC to withhold approval of the new PSA between Meralco and SMC until after the SC resolves with finality on the controversial power supply deals earlier decided by the appellate court’s 13th Division,” the lawmaker stressed.