THE vice chairman of the House committee on energy is urging the Energy Regulatory Commission (ERC) to withhold action on power supply agreements (PSA) between Manila Electric Co. (Meralco) and two generating firms pending final resolution of a case opposing the companies’ bid to raise power rates.

Sta. Rosa City Rep. Dan Fernandez stressed that while the case is pending before the Supreme Court (SC), the ERC should hold in abeyance taking action on PSAs that Meralco earlier awarded to two San Miguel Corp. (SMC) subsidiaries — South Premiere Power Corp. (SPPC) and San Miguel Energy Corp. (SMEC).

“While the appeal of the Office of the Solicitor General (OSG) remains pending with the Supreme Court, I strongly urge the ERC to suspend and withhold approval of new PSAs between Meralco and the two SMC generating companies until the High Court reaches a final decision on the case against their bids to increase electricity rates,” Fernandez said.

“It is better for the ERC to wait for the SC to render judgment on the controversial case involving the PSAs between Meralco and SMC in order not to preempt or render moot and academic its ruling on the matter,” the senior lawmaker added.

Fernandez made the statement after asking the OSG, which represents the ERC, to bring to the SC the Court of Appeals (CA) decision that reversed an ERC ruling junking the petition for rate increase filed by Meralco and the two SMC generating companies.

Fernandez emphasized the need for the OSG to elevate the case to the high tribunal as it involved the collection of higher power rates that would further burden consumers, who are already paying one of the world’s highest electricity bills.

SPPC runs the Ilijan gas-fired power plant while SMEC runs the coal-fired power plant in Sual.

Both companies, along with Meralco, have asked the ERC to approve a 30-centavo rate increase for a new PSA.

In his letter received by the OSG last May 3, Fernandez said the two power plants owned by SMC “are seeking to supply emergency power to Meralco” but at higher rates.

The PSA that the two plants entered into with Meralco has been terminated following the ERC ruling last year that disallowed Meralco and the SMC plants’ petition for a rate increase.

However, Fernandez, in the letter to Solicitor General Menardo Guevarra, lamented that “the termination of the PSAs has apparently allowed Ilijan to bid again for Meralco’s long-term power requirements.”

“This is of major concern to my constituents and all other Filipinos, as it seems that San Miguel has simply substituted a contract that paid it cheaply for electricity for exactly the same contract but this time with a much higher price,” Fernandez’s letter stated.

The lawmaker said it was reported last January that the ERC would bring the case it lost in the CA to the SC.

“However, it is now May 2024 — more than four months from the CA decision — and I have not heard whether the ERC or the Office of the Solicitor General has filed the needed appeal or petition,” Fernandez said.