Court affirms ERC authority on settling supply deal issues
By Alena Mae S. Flores – December 22, 2023, 9:00 pm
from manilastandard.net
THE Energy Regulatory Commission (ERC) on Friday welcomed the decision of the Court of Appeals (CA) confirming the regulator’s jurisdiction over disputes arising from retail electricity service agreements including the issuance of cease-and-desist orders as provisional relief.
“As we continue to promote and expand consumer choice programs in the Philippine power sector, we need to remain diligent in capacitating our consumers in power supply contracting and vigilant in protecting the regulatory space in which consumers can seek relief. We are encouraged to stay the course with this recent development by the Philippine judiciary,” ERC chairperson Monalisa Dimalanta said.
The CA’s 11th Division dismissed six petitions for certiorari filed by Manila Electric Co. and its local retail electricity supplier (LRES) MPower against the ERC on Nov. 29, 2023.
The disputes arose when Meralco and MPower implemented the fuel adjustment costs in the contracts with the respondents, and threatened to disconnect and stop their electricity supply after their non-payment of the fuel adjustment costs.
The CA said decisions of administrative agencies are “accorded great respect, owing to a traditional deference given to such administrative agencies equipped with the special knowledge, experience, and capability to hear and determine promptly disputes on technical matters.”
Citing the case of Antipolo Realty Corp. v. NHA, the CA said that “the need for specialized administrative boards or commissions with the special knowledge, experience and capability to hear and determine promptly disputes on technical matters or essentially factual matters, subject to judicial review in case of grave abuse of discretion, has become well nigh indispensable.”
It said that in the exercise of such powers, an agency has the authority to interpret and apply contracts and determine the rights of private parties under such contracts.
The CA also found the ERC to have acted pursuant to its statutory powers under Section 43(u) of the Electric Power Industry Reform Act (EPIRA) which grants it original and exclusive jurisdiction over all cases involving disputes between and among participants or players in the energy sector.
The CA said the parties themselves recognized the authority of the ERC by incorporating Clause 14.2. in the RESA which states that parties can bring disputes before the ERC for resolution.
