Citing costs, MPower warns vs. disconnections

BY LENIE LECTURA – NOVEMBER 15, 2022
from Business Mirror

MPower, the retail electricity supply arm of Pangilinan-led Manila Electric Co. (Meralco), continues to find ways to supply the requirements of its customers amid spiraling costs in fuel, coal and gas—a global trend that could trigger the disconnection of power supply to its large customers if no necessary rate adjustments are made.

“MPower continues to closely coordinate and extensively exhausts all means to come up with a mutual agreement with its customers,” it said.

This after several companies asked the Energy Regulatory Commission (ERC) to issue temporary restraining orders to prevent their retail electricity suppliers (RES) from disconnecting their power supply.

MPower said it has been offering various options, including Installment Payment Arrangements or assistance to those who opt to switch to another supplier to mitigate the impact of the FCRA (foreign currency rate adjustment) to its customers.

The FCRA, which is allowed under its supply contracts with its customers, is a revenue neutral, pass-through charge that goes to generation companies which have been affected by unprecedented increases in global fuel prices, MPower explained.

“MPower is committed to keep its customers’ best interests as the top priority while being mindful of its financial obligations to its own generation suppliers requiring the same,” it stressed.

In separate filings with the ERC, Winsome Development Corp., Taifini Copper & Conductor, Inc., Quanta Paper Corp., Air Liquide Pipeline Utilities Services Inc. – Balamban, Air Liquide Phils. Inc., Air Liquide Pipeline Utilities Services, Inc., Willin Sales Inc., Waltermart Ventures Inc., WJ Global Inc. and California Garden Square Condominium Association Inc. said their RES had informed them of an additional charge beginning the next billing cycle month of FCRA due to the unprecedented increases in the global price of oil, coal, gas and other fuel sources.

The notice of change in circumstances attributes this increase to global events including China’s increasing demand last winter months, the Indonesian government’s curtailment of its coal exports and the conflict between Russia and Ukraine.

Further, the RES told them that there is a need to discuss additional FCRA that does not cover the impact of the increases in fuel cost.

The RES have sent notices of termination of retail electricity supply agreements to the firms. In turn, these firms asked the ERC to issue provisional reliefs of TRO and writ of preliminary injunction from disconnection their electricity supply.

The ERC have set separate hearings on the petitions.