Electricity rates across Luzon, Metro Manila included, were seen rising next year as a result of the voiding of an Energy Regulatory Commission (ERC) order regulating prices at the Wholesale Electricity Sport Market (WESM).
Monalisa Dimalanta, ERC chairperson, told reporters the adjusted power rates will affect not only Metro Manila consumers of the Manila Electric Co. (Meralco) but customers from other distribution utilities and electric cooperatives in Luzon as well.
According to Dimalanta, the ERC has already computed the new rate but timing its collection is still being studied.
She declined to reveal the final rate but acknowledged it to be quite high and may be collected over a three-year period starting 2024 as doing it a single year will be too costly.
“We might issue an order since the IEMOP (Independent Electricity Market Operator of the Philippines) needs an authority to collect. Not all generation companies have claims and some need to pay themselves. Situations vary,” Dimalanta said.
The Supreme Court en banc in July 2022, the SC faulted the ERC for issuing an order although it was still completing its findings on possible abuse of market power by generation companies and affecting the price of electricity in the market in late 2013.
The ERC had said the order meant to address the abnormal spike and unreasonable price of electricity imposed by the generation companies in November and December that year.
The ERC capped the price of electricity sold at the WESM and reduced the rate charged the consumers by more than a third from P24 billion to P7 billion.
The regulator also probed alleged collusion and price manipulation in the spot market during the maintenance shutdown of the Malampaya gas facility during the period.
The SC in its 2022 decision noted the ERC failed to notify the affected parties on the probe which violated the generation companies’ right to due process.
Nevertheless, the SC upheld the ERC order approving the Meralco request for a staggered collection of an automatic rate adjustment arising from generation costs incurred in November 2013.
It noted that Meralco informed the ERC of the cost of the charge to be passed on to customers amounting to P22.64 billion equal to a generation charge of P9.1070 per kilowatt hour in the December 2013 billing.
The companies the ERC investigators said were likely involved in the collusion to raise power rates in late 2013 were First Gas Power Corp.; South Premiere Power Corp.; San Miguel Energy Corp.; Masinloc Power Partners Co., Ltd.; Quezon Power (Phils.) Ltd. Co.; Therma Luzon, Inc.; Sem-Calaca Power Corp.; FGP Corp.; the National Grid Corporation of the Philippines; 1590 Energy Corp.; AP Renewables, Inc.; Bac-Man Energy Development Corp.; First Gen Hydro Power Corp.; GNPower Mariveles Coal Plant Ltd. Co.; Panasia Energy Holdings, Inc.; Power Sector Assets and Liabilities Management Corp.; SN Aboitiz Power; Strategic Power Development Corp.; Bulacan Power Generation; and Vivant Sta. Clara Northern Renewables Generation Corp.
