House Urged to Probe New Power Hike

By RIO ROSE RIBAYA
September 24, 2010, 6:37pm

MANILA, Philippines — Party-list lawmakers on Friday urged the House of Representatives to investigate the Energy Regulatory Commission (ERC) for allowing an "unjust" P0.0314 per kilowatt-hour increase on electric power rates starting next month.

Bayan Muna party-list Rep. Neri Colmenares and Gabriela Women's Party Rep. Luzviminda Ilagan castigated the ERC, which issued an "unfair ruling" that allows Manila Electric Company (Meralco) to increase electricity charges.

Colmenares and Ilagan said that injustices will arise after ERC authorized Meralco to collect the increases until P3.371 billion in excess purchases and its interest, from wholesale electricity spot market (WESM) from August 2006 to May 2007 is recovered.

"The ERC is being unfair to the people. Since the ERC has approved electricity rate increase 2009, Meralco gas earned billions of pesos in profits until now. They earned P2 billion during the first quarter of this year," Colmenares said.

"They also have a petition to hike their prices in the next five years. What else should they recover from if they are already reaping billions of pesos at the expense of the consumers?" he asked.

Ilagan complained that making the public pay for business loss is "anomalous" as it is "immoral" to pass the management concern on the consumers considering that the said increase were not justified with Meralco's "erratic power services."

Citizens Battle Against Corruption (CIBAC) party-list Rep. Sherwin Tugna urged ERC to implement the power rate increases on installment basis so as not to burden the poor and middle-class power consumers.

"Assuming that Meralco is legally entitled to get the generation rates, it must be implemented for a long period of time so that it will not be a heavy burden for Filipinos. They should not impose another one on the masses," Tugna said.  

He also urged the Lower Congress to step into the matter to ensure that the interest of power consumers will be protected.

In September 2008, Meralco filed a petition before the ERC to reconsider its June 2008 ruling disallowing them to recoup a portion of the P2.7 billion in generation costs it incurred.