Citizen Watch decries P17 billion in projected charges to be passed on to power consumers 

2013 was a disastrous year for the power sector. In addition to the scheduled closure of Malampaya, several other plans were also shut down, causing rates in the Wholesale Electricity Spot Market (WESM) to skyrocket for the electricity sold from October to December that year.

Thankfully the Energy Regulatory Commission, in its regulatory function, punctually intervened to prevent power generators to take advantage of the difficult situation. The government body voided these exorbitant prices. This victory, however, is now undermined by a Court of Appeals decision reversing the void order from the ERC.

The consequence of this decision is enormous. In particular, it will pass on some P17 billion in charges to power consumers in Luzon. A typical household would pay an average of P700 on top of its monthly electric bill, while commercial and manufacturing establishments can expect hikes of P10,000 and P350,000, respectively.

Atty. Tim Abejo, CitizenWatch Convenor, said: “Electricity consumers in Luzon will bear the burden of the CA decision as it would force distribution utilities to collect from end-users more than P17 billion just so the generation companies can get additional profits.”

This amount is bound to add to the already enormous profits that generation companies made that year, which some reports pegged at up to P50 billion.

“Consumers should not suffer by reason of this decision. We trust the that ERC, under the newly appointed Chairman Agnes Devenadera, and the Supreme Court will take the appropriate actions in protecting the rights of the Filipino consumers.”