Meralco: Delay could push up power rates

THE Manila Electric Co. (Meralco) said on Monday it would follow the temporary restraining order (TRO) extension issued by the Taguig Regional Trial Court (RTC) that suspends its 1,000-megawatt (MW) power supply biddings but warned that electricity rates could go up as a result of the delay.

The court had granted a previous petition by operators of the Malampaya gas project to extend the TRO from three days to 20 days.

The biddings were supposed to have been carried out through the competitive selection process (CSP) on August 2 and September 3.

«The TRO will halt our CSP-related activities for 20 days, impacting our efforts to secure the most cost-effective power supply for our customers,» Meralco Senior Vice President and Head of Regulatory Management Jose Ronald Valles said.

«We are reviewing the court's order and consulting with our legal counsel to determine our next steps. This also includes evaluating potential delays in the bidding process, which could, unfortunately, lead to higher power rates for our customers. But despite these challenges, Meralco remains steadfast in our commitment to comply with all applicable laws and regulations,» Valles said.

He clarified that plants utilizing Malampaya gas «are not excluded from participating in the bidding process. On the contrary, they are among the prospective bidders who have shown interest in submitting their offers.»

«We appreciate the public's understanding as we navigate through this legal process. We assure our customers and stakeholders of our continued efforts to advocate for their best interests and secure a stable and least-cost power supply,» he added.

Valles said, «These processes are conducted in strict accordance with the rules set forth by the Department of Energy (DoE) and the Energy Regulatory Commission (ERC).»

He said the DoE and ERC «play a crucial role in setting the regulatory framework and ensuring the integrity of the competitive selection process for power supply.»

«Moving forward, and in line with the principle of sub judice, Meralco will refrain from commenting on the merits of the ongoing legal proceedings,» Valles added.

According to the Malampaya consortium, the