ERC to elevate power rate hike case against SMC, Meralco to Supreme Court
By Alena Mae S. Flores – January 9, 2024, 6:00 pm
from manilastandard.net
The Energy Regulatory Commission plans to elevate its case to the Supreme Court after the Court of Appeals sustained with finality its June 2023 decision annulling its denial of the rate hike application jointly filed by the power units of San Miguel Corp. and Manila Electric Co.
“We will go to SC,” ERC chairperson Monalisa Dimalanta said, adding that they would coordinate with the Office of the Solicitor General. The ERC has yet to receive a copy of the CA decision.
The CA’s 13th Division, in a decision dated Dec. 28, 2023, denied the motion filed by the ERC and National Association of Electricity Consumers For Reforms Inc. (NASECOR) seeking the reversal of the said ruling penned by Associate Justice Charlene Hernandez-Azura.
The appellate court said the ERC and NASECOR failed to present new arguments that would warrant the reversal of its decision.
SMC said its affiliates South Premiere Power Corp. and San Miguel Energy Corp. had yet to receive from their counsel the CA decision. Meralco said it also had not yet received a copy of the CA ruling.
“A scrutiny of the motions for reconsideration reveals that the grounds relied upon by respondent-intervenor NASECOR and public respondent ERC were already thoroughly considered and passed upon in the decision being sought to be reconsidered; and that contrary to the claims of public respondent, the Court has clearly provided its basis in making its rulings,” the CA said.
“Accordingly, our decision dated June 27, 2023 stands,” the CA said.
The CA granted the petition for certiorari filed by SMEC and SPPC on June 27, 2023, seeking to nullify the order of the ERC denying their bid for electricity rate hike. It said the ERC gravely abused its discretion when it rejected the joint motion for price adjustment filed by SMC’s power units and Manila Electric Company (Meralco) on Sept. 29, 2022.
SPPC and SMEC and Meralco asked the ERC for price adjustments to serve as temporary relief covering a combined P5.2 billion in losses incurred from January to May 2022 due to the unprecedented spike in fuel prices.
The CA also ruled that ERC’s order invalidating the notice of termination and directing Meralco to preserve the power supply agreements (PSAs) denied SPPC and SMECs right to due process.
It said that the determination of the validity of the notices of termination was not within the scope of jurisdiction of the ERC, as this should be addressed to the proper tribunal in accordance with the arbitration clause in the PSAs.
