Wilson Lim scores victory after ERC issues CDO vs Meralco’s retail electricity supplier

The Energy Regulatory Commission has issued an order stopping MPOWER, the local electricity supplier of Manila Electric Co., from disconnecting supply to a member of bilyonaryo Wilson Lim’s Waltermart and Abenson Group.

Winsome Development Corp. sought the issuance of a restraining order and/or preliminary injunction against MPower for alleged breach of their retail electricity supply agreement and imposition of fuel cost recovery.

The disconnection would have rendered Winsome without power, thus affecting its customers and the entire business chain.

ERC urged both parties to maintain the status quo with respect to their retail electricity supply agreement until the resolution of the petition.

Winsome said MPower is insisting on the recovery of the fuel cost adjustment due to the alleged extraordinary increases in fuel costs.

The Lim-owned company said MPower imposed the fuel cost recovery adjustment (FCRA) wrongfully and unilaterally, contrary to the fixed product pricing agreement.

MPower, for its part, cited a notice of change of circumstance due to the unprecedented spikes in the global price of oil, coal, gas, and other fuel sources.

The company said it would pass on the fuel adjustment cost charged by its suppliers.

Winsome said it would suffer tremendous loss and possibly close its business should MPower insist on the disconnection and the payment of the FCRA.