Meralco warns of rotational blackouts without rate hike

Posted at 01/10/14 4:53 PM

MANILA, Philippines – Stopped by the Supreme Court (SC) from charging power consumers more, Meralco warns that rotational blackouts may soon be a problem.

In a comment submitted to the high court, Meralco said suppliers may not sell power to Meralco anymore if the power distributor can’t pay them in full as a result of the temporary restraining order (TRO) on the P4.15 power rate hike of Meralco.

Meralco noted that if the court case drags on or the power rate hike is nullified by the court, the public may be facing power interruptions, particularly during the summer months.

The power rate hike was supposed to have been implemented in three tranches.

In a text message to ABS-CBN, Energy Sec. Jericho Petilla said the government continues to mediate between Meralco and power generators for a practical solution on how fuel costs can be shouldered by the parties to ensure continuity of service.

"While the SC TRO is pending and to ensure the continuity of service, the DOE has been in the process of mediating between Meralco and the power generators on a practicable solution as to how fuel costs will be shouldered between the parties and to reconcile their accounts depending on the final outcome of the case,” he said. -- ANC