The Energy Department may extend the deadline for the mandatory implementation of retail competition and open access scheduled in December following the recent favorable ruling of the Supreme Court.
The Supreme Court, in a resolution dated October 10, ruled in favor of the regulator enjoining Manila Electric Co. and the Regional Trial Court of Pasig City Branch 157 from continuing proceedings on the injunction granted by the lower court to the power distributor.
“We confirm the recent issuance by the Supreme Court of a temporary restraining order stopping the Regional Trial Court of Pasig from enforcing an injunction order the latter issued against the implementation of the retail competition and open access system,” ERC chairman Jose Vicente Salazar told reporters.
Meralco, meanwhile, disclosed to the Philippine Stock Exchange it received the copy of the order, but said “the TRO is not expected to have any effect on the distribution business of Meralco as its distribution charges are not in issue in this case.”
Meralco earlier obtained a TRO from the Pasig RTC in June, enjoining the DoE from implementing and enforcing the retail competition and open access directive.
Meralco has said it is not required to obtain a retail electricity suppliers license from the ERC as it is already included in the franchise.
ERC and DOE, however, elevated the case to the Supreme Court.
“For its retail electricity supply business segment, Meralco is now required to obtain a license from the ERC to operate as a DU (distribution utility) affiliated RES (retail electricity supplier) since the assailed DOE (Department of Energy) and ERC issuances prohibits DUs from engaging in the supply business as local RES,” Meralco said.
Salazar said the issuance of the TRO by the Supreme Court was a welcome development and “clears the way for the full implementation by the ERC of its recently-promulgated rules on RCOA, especially those that pertain to mandatory contestabilty by December 2016.
RCOA allows large power users with a capacity of one megawatt and above to choose their own power suppliers.
ERC has proposed that power users with a demand of one megawatt and above must sign a retail supply contract with an electricity supplier by December 26, 2016.
It said end-users with a monthly average peak demand of at least 750 kW are directed to choose their suppliers by June 26, 2017.
