A consumer rights coalition on Thursday criticized the Energy Regulatory Commission (ERC) for approving supply deals between Meralco and its affiliate generation firms, warning that the move could push electricity rates higher and violate power sector regulations.
The Power for People Coalition (P4P) linked the projected increase in April electricity bills to newly approved power supply agreements (PSAs) involving South Premiere Power Corporation (SPPC) and Excellent Energy Resources, Inc. (EERI).
Both firms are partly owned by Meralco through its power generation arm and joint ventures with Aboitiz Power and San Miguel Global Power.
“The electricity bills are already too high for the ordinary consumer,” said P4P Convenor Gerry Arances. “These PSAs with Meralco’s affiliated plants are adding to the burden by showing a trend of steady increase.”
P4P cited Section 45 of the Electric Power Industry Reform Act (EPIRA), which bars distribution utilities from sourcing more than 50% of their supply from affiliates.
The group said Meralco’s contracts now exceed that limit, reaching 51.44% — or nearly 60% when factoring in peak demand.
“There is a clear violation of the law that the ERC should have put a stop to,” Arances said.
The group also questioned the ERC’s approval despite its earlier commitment to review the Meralco-Aboitiz-San Miguel joint venture.
“Where is the review? Why were these PSAs approved despite the questions about ownership and EPIRA compliance?” Arances asked.
With Meralco’s franchise renewal now awaiting the President’s signature, Arances urged the ERC to act. “By the provisions of EPIRA, the ERC is now the last line of defense for consumers. It is time it steps up and does its job of protecting consumers,” he said.
