A consumer group criticized the Energy Regulatory Commission’s (ERC) decision to reject the modest rate hike sought by San Miguel Corp. (SMC) Global Power despite the lack of a cheaper source of electricity.
National Association of Electricity Consumers for Reforms, Inc. (Nasecore) chairman Pete Ilagan said the ERC took the wrong approach in assessing the request of bilyonaryo Ramon Ang’s South Premier Power Inc. in seeking a rate increase.
“Sana kung hindi po ninyo aaprubahan ang price adjustment na finile ng San Miguel saka South Premier, sana makahanap po tayo ng isang supplier na matatapatan ito,” Ilagan told One News’ “The Chiefs.”
San Miguel secured a 60-day temporary restraining order (TRO) that essentially allowed it to stop supplying electricity to Meralco following the rejected rate increase, which it said would lead to huge losses for the power generation company.
On Monday, Henry Sy Jr. and Roberto Coyiuto’s National Grid Corporation of the Philippines (NGCP) placed the Luzon grid on yellow and red alert amid thin power reserves.
Ilagan pointed out that rather than reject the hike, the ERC’s next step should have been to review how power plants price their supply.
“Dapat ang initiative ng ERC, itigil ang pagtaas ng presyo ng kuryente, i-review ang PSA (power supply agreements) that contains pass-on provision na per kilowatt hour sa kanilang blended rate,” he said. “Pwede pong gawin ng ERC yan sapagkat ang rate-setting function, ang basehan po niyan ay public interest.”
