TRO on Meralco power rate hike expires tomorrow

MANILA, Philippines - The Manila Electric Co. (Meralco) will have to wait for the recalculated rates from the electricity spot market operator before it can collect higher rates from customers.

This developed as the Supreme Court (SC)’s temporary restraining order (TRO) on Meralco’s charging of higher rates in December 2013 expires tomorrow.

If the high court decides not to extend the TRO as petitioned by the Makabayan bloc of lawmakers, the Philippine Electricity Market Corp. (PEMC) would have to issue its recalculated rates for the November 2013 supply month that was reflected in Meralco’s December 2013 generation charge.

Larry Fernandez, Meralco head of utility economics, said they would have to file an application with the Energy Regulatory Commission (ERC) before issuing new rates like what it did with the January 2014 generation charge.

The SC stopped Meralco from collecting the record high generation charge of P9.10 per kilowatt-hour through a TRO issued on Dec. 23. It extended the TRO for another 60 days to April 22.

The ERC, after investigating the situation that led to the spike in electricity prices in December 2013 and January 2014, ordered the PEMC to recalculate the rates for the period. The PEMC is the operator of the Wholesale Electricity Spot Market Corp. (WESM), the country’s trading floor for electricity.