The Supreme Court’s decision to deny the Energy Regulatory Commission’s (ERC) motion for reconsideration might result in the cessation of power supply.
The ERC has filed a motion for reconsideration of SC’s ruling to void over 90 power supply agreements (PSA) that did not undergo bidding.
“The High Court’s decision will result to the possible immediate termination of 99 affected PSA contracts which will result in the cessation of power supply to 52 Distribution Utilities (DUs) that are serving 13 million electricity consumers,” according to their statement.
There might also be a possible surge in power bills due to the said decision, the ERC added.
However, the ERC also said they will comply with the directive of the Supreme Court.
“We only need to seek guidance through a motion for clarification on how to implement their decision particularly on the rates and the continued supply of electricity to the affected public utilities,” according to ERC chairperson and CEO, Agnes VST Devanadera.—AAC
The Manila Electric Company (Meralco) will implement another power rate cut this August. This is the fourth power rate cut since May.
Power rates will drop by P0.42 per kilowatt-hour (KWH).
If a consumer consumed 200-kilowatt hours in a month, a total of P85 will be cut from their power bill.
Power rate cuts:
200KWH P 83.00
300KWH P 125.00
400KWH P 167.00
500KWH P 209.00
According to Meralco Spokesperson Joe Zaldarriaga the power rate cut is due to lower generation price.
“Ang dahilan ay iyong pagbaba sa supply na nangagaling sa o binibili natin mula sa wholesale electricity spot market (The reason is due to low power prices from the wholesale electricity sport market), primarily because of improved supply conditions,” he said.
Zaldarriaga also said these cuts might still continue until September if there is enough power supply in power plants.
Since May, around P1 per KWH power rate cut has been implemented by Meralco.
“Sakali mang magkaroon ng adjustment hindi na masyadong magiging abrupt (If there will be adjustments it would not be abrupt). If the trend in the spot market continues and the supply continues to be more than adequate then asahan natin prices could be flatish (expect the prices could be flat),” according to Zaldarriaga.—AAC (with reports from Joan Nano)
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