Chiz wants court to
stop power hike
By Office of Senator Chiz
Escudero
December 11, 2013
PASAY CITY – Senator
Chiz Escudero said the possibility of seeking a temporary restraining
order (TRO) from the court is one of the options to prevent the Manila
Electric Co. (Meralco) from charging its consumers P4.15 per kilowatt
per hour (kWh) beginning this month, the utility giant’s biggest power
rate increase.
“I think that is being
studied by some groups already and even on our part, we are looking
into it,” Escudero said. “Taking this to court and ask for a TRO is
the closest, legal and soundest option available now.”
According to Escudero, his
office is in the process of obtaining pertinent documents for review
and may challenge in court Meralco’s power rate hikes, which will be
implemented in three installments.
The power company claimed
that the increase would help it cope with the adjustment in generation
charges spawned by the maintenance shutdown of the Malampaya facility
and other power plants where it gets energy supply.
The huge hike will cost an
additional P830 to the monthly billing of consumers using an average
of 200 kwh.
Such increase, Escudero
said, is clearly an abuse of the automatic increase provision granted
to Meralco by the Energy Regulation Commission (ERC.)
“Meralco cannot justify its
increase with the generation cost rationale. If they are too quick to
impose a price hike, they must also this quick or quicker to refund
the consumers and give us our rebates in the shortest period of time.
It should bequid pro quo,” he said.
Escudero also blasted the
ERC for sleeping on the job and allowing an antiquated system to
prevail, which is inherently biased against consumers.
“The ERC has been using a
cost-based formula in fixing rates when it should use a market-based
formula. In the cost-based system, the only basis they have in pricing
is the cost presented by the distribution facility applying for an
increase. It does not factor in the general market, like that
much-awaited rebate. ERC does not even factor in the multiplier effect
it will have on the market,” Escudero pointed out.
The senator also welcomed an
inquiry by the Senate to scrutinize Meralco’s power rate hike, the ERC
and the Department of Energy and “explain this and other distortive,
biased and dilatory practices against consumers.”
“We still have one week to
conduct sessions and hearing. We just passed the national budget and
that’s already eighty percent off our load for this session. I believe
we still have time. I hope this increase will be short-lived and
hopefully will be stopped via the intervention of courts,” Escudero
said.