Power retailer Manila Electric Co. said it will appeal the decision of the Supreme Court clearing the implementation of the retail competition and open access scheme.
The high tribunal earlier issued a temporary restraining order stopping Meralco from continuing with the legal proceedings against the provisions of the power industry’s retail competition and open access.
“Considering the TRO that has been issued by the Supreme Court, we are examining the legal remedies that we can explore,” Meralco first vice president Ivanna dela Peña told reporters.
Dela Peña said Meralco was set to file its response to the court ruling on Oct. 29.
Retail competition and open access allows large power users with a capacity of one megawatt and above to choose their own power suppliers.
“At the same time, we are also exploring the possibility of forming the affiliate RES [retail electricity supplier] because that is allowed under the rules…Meantime this issue is pending at the Supreme Court,” he said.
Dela Peña said Meralco believed that a local RES or a distribution firm’s retail electricity supplier was allowed by Electric Power Industry Reform Act.
Meralco earlier claimed it was not required to obtain a retail electricity supplier’s license from the Energy Regulatory Commission, because it was already included in its franchise.
“We are banking on that and we trust that the court will see through the arguments that we will submit to the Supreme Court,” Dela Peña said.
Meralco chairman Manuel Pangilinan said the company could not wave its rights over what the law allowed.
“I think it’s difficult to wave our rights with respect to what the legal framework allows us to do. Secondly, more of a commercial front, Meralco and MPower has got into this position of serving a contestable market on its own,” Pangilinan said.
Pangilinan said Meralco managed to achieve its market position “without benefit of owning a power plant unlike the other RES.”
“They do have power plants of their own. To me Meralco did this on its own. There has been some allegation that we dominate because of our wires. But our distribution system is open to all RES,” he said.
The Supreme Court, in a resolution dated October 10, ruled in favor of the Energy Department and the Energy Regulatory Commission enjoining and Pasig City regional trial court branch 157 from continuing proceedings on the injunction granted by the lower court to the power distributor.
Meralco was able to obtain a TRO from the Pasig RTC in June enjoining the DoE from implementing and enforcing its DOE Circular No. DC2015-06-0010; and the ERC from implementing its ERC Resolution No. 5, Series of 2016 and ERC Resolution No. 10, Series of 2016.
ERC and DOE, however, elevated the case to the Supreme Court by filing a petition for certiorari and prohibition.
“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 since the assailed DOE and ERC issuances prohibits DUs from engaging in the supply business as local RES,” Meralco said last week.
