February 10, 2014

Palace opposes lifting of TRO on power rate hike

ThePhilippine Daily Inquirerreported yesterday that thegovernmentis against the lifting of the temporary restraining order (TRO)on a hefty power rate hike.

The statement was made after the Manila Electric Co asked the Supreme Court to lift the TRO. The government argued that doing this will be against public interest and not warranted given the ongoing probe into the cause of the hefty power rate hike which stemmed from the high generation costs in November when various power plants and the Malampaya natural gas facility went on maintenance shutdown.

Our Take: Until the issues are resolved, we expect these regulatory risks to continue weighing on investors’ sentiment on Meralco and the power generation companies. – WealthSec