ERC chairman complies with Ombudsman’s suspension order
By Ed Paolo Salting and Janine Alexis Miguel – September 10, 2024
from The Manila Times
ENERGY Regulatory Commission (ERC) Chairman and CEO Monalisa Dimalanta on Monday began serving the six-month preventive suspension imposed on her by the Ombudsman.
The Ombudsman suspended Dimalanta for allowing the Manila Electric Co. (Meralco) to buy electricity on the Wholesale Electricity Spot Market (WESM) and pass on the cost to consumers without the ERC’s approval.
“In compliance with the order, I shall immediately cease to perform my functions as chairperson and CEO of the ERC. However, all operations of the agency shall continue to function, to the extent possible and as required by the exigencies of service,” Dimalanta said.
“The order does contain some allegations of the complaint, without providing, however, any statement as to the evidence submitted by Complainant National Association of Electricity Consumers for that became the basis for the issuance of the preventive suspension order,” Dimalanta said.
She said she and her lawyers “are studying the matter in order to take all available legal remedies given the circumstances.”
In its August 27 order, the Office of the Ombudsman said Dimalanta was being suspended while it deliberates the charges of grave misconduct, grave abuse of authority, and gross neglect of duty of conduct prejudicial to the best interest of service against her.
Several individuals and groups have expressed their support for Dimalanta.
Former Energy secretary and Alternergy Holdings Corp. chairman Vicente Perez said he was “saddened to learn” about the suspension order.
“I have continued faith and confidence that the allegations will be resolved favorably. Chairman Mona has exemplified and embodied strong professionalism since taking the helm at the ERC and ensures that there is a strong balance between encouraging investment in the country’s power sector and protecting the interest of the consumers. Her absence at the ERC could negatively impact the implementation of these reforms. My hope is that there would be an urgent resolution to this,” Perez said.
The Philippine Independent Power Producers Association (Pippa) said it was deeply alarmed by Dimalanta’s suspension.
“Based on the reports available to us, the basis for the suspension seemed to be anchored on alleged grounds that are unfounded and without proper basis,” the association said.
“We generators hope that this matter will be resolved at the soonest possible since the suspension of our ERC chairperson affects the whole industry. We are currently pushing for reforms in the system and other items that we believe will address energy security and reliability. The industry cannot afford a commission without its chair,” Pippa said.
The Philippine Chamber of Commerce and Industry (PCCI) said the suspension order puts at risk the independence and authority of the commission and could impact consumers.
“This decision, along with other recent decisions by the judiciary, puts at risk the trust, independence and authority of the ERC,” the PCCI said in a joint statement with the Philippine Exporters Confederation and the Employers Confederation of the Philippines.
“Regulators are essential to fostering an environment where investors will invest, consumers are protected, and economic growth is sustainable,” it said.
