“Why did the ERC allow Meralco to increase its rates when it can’t even tell us the kind of alternative fuels that were used, its cost per unit and the quantity used during the two and a half week shutdown?”
Tags: Power Rate Hike
Power generation companies have been assured their incomes even when they don’t have to deliver much power, as when they themselves are in scheduled shutdown, or when another source is supplying energy to the distributors.
From July 2011 to June 2015, Meralco has “over-recovered” at least P2.39 billion ($51.2 M) from its consumers, estimated a consumers’ alliance.
“While we should look for solutions if there is an impending crisis, we should guard against short term knee jerk solutions that make energy costly.” – Bayan Muna Rep. Neri Colmenares
“The problem with Malacañang’s proposal to allow the President to enter into P6 billion to P10 billion ($136 million to $227 million) worth of negotiated power contracts is that it is based on Energy Secretary Jericho Petilla’s mere insistence of a power shortage that is not supported by verifiable data.”
“Meralco’s core net income yielded rates of return on equity of 22 percent and 26 percent in 2011 and 2012, respectively— way in excess of the 12 percent reasonable rate of return determined by the Supreme Court.” – Marcelo Tecson, former financial and management service chief of the Department of Energy
“How can the PEMC or the ERC recalculate on the basis of a failed market? It was abuse of market power not just market failure. Who manipulated the under-offering that led to market failure? They must be held accountable and should be the one to pay, not the people.” – Bayan Muna Rep. Neri Colmenares
Even as the Supreme Court has yet to decide on petitions against its November-December rate hike, Meralco is asking for the approval of a “provisional” hike, reasoning that the second tranche of the stalled rate hike is not covered by the high court’s TRO.
Since the inception of the Wholesale Electricity Spot Market, there were only five times when the bid offer went up to P62, but this is the first time that a generating company (Therma Mobile or TMO) was able to sell at that high a price.
Lights off on Feb. 17 from 7:00 p.m. to 8:00 p.m., a big rally at the Supreme Court on February 18.
In this week’s hearing, Meralco is ostensibly just following rules, and WESM rules have inability to prevent manipulation while the regulator failed to ensure rules do not prejudice Meralco costumers.
Read also: Opposition to Meralco rate hike persists despite 13-cent slash in rates