ERC joins Meralco vs 2nd SMC TRO on power service deal
The Office of the Solicitor General represented the ERC in opposing the TRO or Injunction that SMC filed before the 17th Division of the Court of Appeals last Wednesday.
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Daily TribuneThe Office of the Solicitor General represented the ERC in opposing the TRO or Injunction that SMC filed before the 17th Division of the Court of Appeals last Wednesday.
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The Energy Regulatory Commission has opposed the application of San Miguel Energy Corporation to obtain a temporary restraining order from the Court of Appeals against ERC's dismissal of a SMEC price hike petition.
The regulator thus joined Meralco in resisting the move of SMEC, an energy unit of conglomerate San Miguel Corp. that operates the Sual coal plant.
SMEC is expected to repeat sister company South Premiere Power Corp.'s maneuver in suspending a power supply agreement with Meralco once it obtains a TRO.
Meralco is now sourcing the shortfall as a result of the SPPC pullout from an emergency PSA and the Wholesale Electricity Spot Market which are more expensive than the fixed-priced PSA.
ERC wants consumers shielded
The Office of the Solicitor General represented the ERC in opposing the TRO or Injunction that SMC filed before the 17th Division of the Court of Appeals on Wednesday.
The SolGen said the ERC move seeks to protect millions of customers from power price spikes.
SMEC has a 330-megawatt baseload Power Supply Agreement with Meralco executed following a Competitive Selection Process in 2019.
The company applied for the TRO to challenge the ERC Order dated 29 September, which denied SMEC's motion for price adjustment and directed SMEC and the Manila Electric Company to uphold the fixed price and the provisions of their PSA.
In its 34-page opposition, the OSG reiterated that the 17th Division of the CA has no jurisdiction to issue a TRO since only the Supreme Court can restrain the implementation of the Electric Power Industry Reform Act of 2001 or the EPIRA.
It likewise asserted that ERC merely exercised its consumer protection mandate and enforced the distribution utilities' obligation to supply the electricity in the least cost manner.
It added that SMEC's Petition for Certiorari should also be dismissed for its failure to file the mandatory Motion for Reconsideration in ERC before elevating the issue to the CA.
The 14th Division of the CA previously issued a TRO favoring the suspension of the implementation of the PSA between SPPC and Meralco.
Nonetheless, the ERC and OSG are optimistic that the 17th Division of the CA will carefully consider their opposition given the recent events after the issuance of the TRO and the suspension of the SPPC-Meralco PSA issued by another division of the collegiate court.
