The Power for People Coalition Supports the Energy Regulatory Commission in Appealing Before the Supreme Court
The Power for People Coalition (P4P) has expressed its support for the Energy Regulatory Commission (ERC) in their appeal before the Supreme Court. This appeal is in response to the decision of the Court of Appeals (CA) to reverse the commission’s ruling disallowing power firms from raising their rates. P4P, a watchdog group, believes that this decision by the CA exposes consumers to higher electricity prices and undermines the protection provided by power supply agreements (PSAs) with fixed rates.
P4P Condemns San Miguel Corporation’s Attempt to Raise Prices
P4P convenor Gerry Arances has welcomed the move of the ERC and its chair, Monalisa Dimalanta, to uphold their duty of protecting consumers from the attempt by San Miguel Corporation (SMC) to profit off the rising price of coal and gas. Arances emphasizes the importance of holding SMC accountable for abiding by their contract and not raising prices on electricity. The petition filed by SMC before the ERC seeking to raise prices was rightfully dismissed by the commission.
The CA’s Decision Puts Consumers at Risk
Arances strongly criticizes the CA for siding with SMC, stating that it has committed a grave disservice to consumers. By reversing the ERC’s ruling, the CA has exposed consumers to higher electricity prices, even when they are protected by a contract. Arances warns that if SMC is able to secure a new PSA for Ilijan, it will set a dangerous precedent, allowing generation companies to increase prices without consequence and rendering power supply agreements meaningless. This situation leaves consumers at the mercy of power companies, especially with temperatures rising.
It is crucial for the Supreme Court to recognize the potential harm to consumers and support the position of the ERC. By doing so, they can prevent the exploitation of rising energy prices and ensure that consumers are protected from unjustified rate increases.
The CA’s decision in June of last year, which ruled against the ERC’s decision to reject the bid of Ilijan and Sual plant owners to raise rates, has raised concerns. These plant owners sought to recoup their losses due to rising fuel prices. However, the ERC’s initial decision to disallow the rate increase was in the best interest of consumers, preventing them from experiencing the burden of higher electricity prices.
P4P believes that the ERC’s role in protecting consumers from unjust rate increases is crucial. The commission’s decision to disallow power firms from raising rates was a necessary step to ensure that consumers are not unfairly burdened by the rising costs of coal and gas. By upholding this decision, the Supreme Court can send a clear message that companies must honor their contracts and prioritize the welfare of consumers.
In conclusion, the Power for People Coalition supports the Energy Regulatory Commission in their appeal before the Supreme Court. They condemn San Miguel Corporation’s attempt to raise prices and emphasize the importance of protecting consumers from unjustified rate increases. The CA’s decision to reverse the ERC’s ruling puts consumers at risk and undermines the protection provided by power supply agreements. It is crucial for the Supreme Court to recognize the potential harm to consumers and support the position of the ERC. By doing so, they can ensure that consumers are not unfairly burdened by rising electricity prices.
Source: The Manila Times