ERC stops Meralco unit from disconnecting SunPower factory
By Alena Mae S. Flores – April 13, 2023, 8:25 pm
from manilastandard.net
The Energy Regulatory Commission ordered Manila Electric Co.’s retail electricity arm MPower to cease and desist from disconnecting Sunpower Philippines Manufacturing Ltd. until the pending issue on the fuel cost recovery adjustment charges is resolved.
SunPower, a Laguna-based supplier of hygienic products including personal care products, adult diapers and face masks, sought ERC’s intervention on its dispute with MPower, saying the contract price under the retail electricity supply agreement is fixed, hence, there is no basis for the imposition of the FCRA.
SunPower said in a filing with the ERC that MPower continued to insist on the payment of the FCRA charges amounting to over P160 million as a pre-condition for the issuance of the ‘attestation of no outstanding balance.’
The company said it was forced to pay a partial payment of over P31 million in FCRA charges to ensure that there was a continuous supply of electricity.
“The commission recognizes that SunPower continues to be under threat of disconnection from respondents. Hence, in order to prevent disconnection, rendering petitioner without electric power, but mindful that granting the relief sought by the Petitioner may be construed as indirectly ruling on the omnibus motion, the commission hereby issues a cease and desist order to be effective from issuance hereof until the resolution of the respondents’ omnibus motion,” the ERC said.
“If disconnected, not only will the petitioner be affected, but its customers as well. With the disconnection, the supply chain will be disrupted and a domino effect will ensue in the downstream. Thus, other consumers will be indirectly affected by any disconnection that will be effected by the respondents,” the regulator said.
SunPower said the continuous imposition of the FCRA would result in irreparable damage to its business.
The company said it has a clear and unmistakable right to enforce the terms of the RESA’s fixed contract, and MPower committed material and substantial invasion of that right by constantly threatening disconnection and cessation of supply of electricity.
SunPower said payment of the FCRA charges, even under protest, would substantially disrupt its financial viability and operations.
MPower and other RES have pending cases with the ERC in the wake of the imposition of the FCRA due to high fuel costs driven by the Ukraine and Russia war and other external factors.
