PRESS RELEASE
Pushes for full refund and damages for consumers
Bayan Muna Rep. Neri Colmenares today said that the recent confusion regarding the recomputation of the power rate hike for December and January done by the Philippine Electricity Market Corporation (PEMC) and the Energy Regulatory Commission (ERC) stems from the fact that the PEMC is composed of generation companies and they would of course minimize their losses. This is the reason why their supposed computation is still high, while on the other hand the ERC is trying to save face regarding this issue so its computation is just P0.48 cents increase for December and P0.49 cents for January.
“While some people say that cutting the price hike by half is already a major victory, that such a large amount taken from the Meralco rate hike will help a lot, we assert that the people do not deserve to pay any rate increase. As it is an increase no matter how small is still a burden to consumers,” said the senior deputy minority leader.
“The recalculated rate is unacceptable. How can PEMC or the ERC recalculate 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. The rate cannot be imposed because it should first pass through a hearing with the ERC to give the people a chance to scrutinize it and oppose it. The temporary restraining order (TRO) of the Supreme Court (SC) must also be respected and until it decides these computations of increases cannot be imposed,” Rep. Colmenares
“Also I’m afraid that application of market rules to generators and Meralco are not straightforward. The average of Dec26-Sept25 is P3.79/kWh. If a generator ran like a baseload plant during said period, this will be the settlement price. If they ran as a midmerit/peaking plant (from intervals 9-16) effective administered price is P5.75 /kWh, but the said price did not reflect on the recomputations,” said the progressive solon.
“Furthermore, these recomputations are still subject to the final say of Meralco, which is the primary one accused of market manipulation. Meaning this computation can still be jacked up by Meralco, which is truly absurd. It is like asking a criminal what reward it wants,” he stressed.
“Meralco has raked in P17 billion in profits last year. While it has collected the power rate hike stopped by the Supreme Court temporary restraining order (TRO) from more than 80% of their customers meaning at least P5 billion. Meralco should refund the whole increase and double it for damages incurred by consumers,” ended Rep. Colmenares.
