LKI asking power generators anew to consider COVID-19 situation as force majeure
Consumer group Laban Konsyumer Inc. (LKI) has urged the Philippine Independent Power Producers Association Inc. (PIPPA) to consider the new coronavirus disease 2019 (COVID-19) pandemic as a force majeure to cause lower power rates for distribution utilities.
In a letter to the group of power generators, LKI president Vic Dimagiba said generation companies must accept claims of power distributors and other cooperatives which have cited force majeure as a remedy under their power supply agreements (PSA).
“Meralco (Manila Electric Co.) had invoked force majeure as per PSA contract to bill consumers the least cost. The April rate report covered 10 days of the lockdown period and solely for the supply of the month of March. The full 30-day lockdown shall be reported in the May rate report. We believe the bigger relief shall be passed on to the consumers at that time,” Dimagiba said.
Last week, Meralco announced a lower generation charge for April, mainly brought about by its claim of force majeure during the enhanced community quarantine. From P4.6632 per kilowatt hour (kWh) last month, generation charge for this month decreased to P4.6385 per kWh.
The company said by invoking force majeure provision allowed it to reduce fixed charges for generation capacity that was not consumed.
