SC asked to extend TRO on Meralco rate hike

MANILA, Philippines - The Supreme Court (SC) was asked yesterday to extend its temporary restraining order (TRO) on the Manila Electric Co. (Meralco)’s record-high rate increase of P4.15 per kilowatt-hour.

In an 11-page motion, petitioners led by Bayan Muna Reps. Neri Colmenares and Isagani Zarate stressed the need to extend the TRO to prevent Meralco from imposing the rate adjustment pending resolution of the case by the high court.

“It is but proper and just to restrain the implementation of the power rate hike anew and with extreme dispatch in order to afford petitioners and the public effective injunctive relief. The previous restraining order must be reinstated and completed by an order from this Honorable Court indefinitely restraining GenCos (generation companies) from collecting the generation charge pending the resolution of this Petition,” they appealed.

The 60-day TRO issued on Dec. 23 last year will lapse on Feb. 21, according the SC spokesman Theodore Te.

Petitioners warned that lifting the TRO would immediately lead to inflation, as the rate hike will add billions to production cost of manufacturers, which would push up the prices of goods and services.

“The impending implementation of the power rate increase will not only unduly deprive five million consumers of their hard-earned income, it will also fuel inflation and further set the economy back by spurring hikes in consumer prices, this time affecting the people of the entire country,” they explained.

“Sans a restraining order, respondent Meralco will be able to deprive its customers of P22.64 billion in additional generation costs, needless to state, to the grave and irreparable injury of millions of Meralco’s customers, including the petitioners,” they stressed.

Petitioners also rebutted the warning of Meralco in oral arguments last Feb. 4 of power outages should it fail to collect the generation costs from the customers, which it owes respondent GenCos.

The petitioners insisted Meralco’s warnings of blackouts are baseless, especially since the Department of Energy publicly announced that there is no undersupply of electricity and the supply situation during summer will not result in blackouts.

“Any threat of brownout, therefore, is not based on the insufficiency of supply. It is nothing more than threatening the people for the people’s exercise of their constitutional right to due process and remedies before this Honorable Court,” they stressed.

GenCos, on the other hand, continued to threaten Meralco with very high penalties, interest rates and legal actions for the delay in the payment of the generation costs that the latter has not paid them on the basis of the TRO, they added.

Other petitioners in the case are Gabriela Women’s Party Reps. Luz Ilagan and Emmie de Jesus, ACT Teachers Rep. Antonio Tinio and Kabataan Rep. Terry Ridon.

The first oral argument was held last Jan. 21 with petitioners Bayan Muna party-list and consumer group National Association of Electricity Consumers for Reforms (Nasecore) presenting their case.

The second was held last Feb. 4 with Meralco facing the high court while the third was held last Tuesday with the Department of Energy and Energy Regulatory Commission taking the podium.

Parties were given until Feb. 26 to submit their memoranda before the high court decides on the case.