On Friday, the rate of the Bangko Sentral ng Pilipinas (BSP) 28-day securities increased, which…
Gatchalian applauds ERC for rejecting the appeal for a power rate increase.
Senator Sherwin Gatchalian praised the Energy Regulatory Commission (ERC) for rejecting the Manila Electric Utility’s (Meralco) request for a price increase. He asked the electric company to ensure that its consumers always have access to electricity.
“I congratulate ERC for upholding the law. Gatchalian said in a statement on Wednesday that the ruling “sets a good precedent that industry participants should suffer the repercussions of their decisions, particularly in cases that impair the welfare of customers.”
Power distribution juggernaut and San Miguel Corporation’s power-generation division submitted a petition to the ERC for a rate increase, but it was denied (SMC).
According to Gatchalian, Meralco should guarantee customers a constant supply of electricity and tariffs in compliance with its contracts with the SMC as the contracting party of the power supply agreement.
The ERC decision resulted from SMC’s electricity arm, SMC Global Power Holdings Corporation (SMGCP), and its subsidiaries choosing to enter fixed-price contracts to supply energy to Meralco customers coming from a natural gas plant in Ilijan, Batangas, and a coal-powered plant in Sual, Pangasinan, in 2019.
Compared to the current S400/MT, coal prices were about $65 per metric ton (MT) at the time of the agreement.
SMC had to purchase electricity on the spot market since the Ilijan plant’s supply of natural gas from the Malampaya field was running low.
Cebuano English Filipino
We appreciate your reading. You may also consider sharing it with others.
Please comment below if you found this post interesting.
Be one of our DONOR / SPONSOR to support NextGenDay news website.