The Supreme Court has rejected the orders of the Energy Regulatory Commission allowing the power supply agreements between Manila Electric Co. with the power generation companies without public bidding.
READ: Cusi welcomes SC decision requiring supply deal bidding
Voting 9-2 in a special session on May 3, the high court granted the petitions of consumer group Alyansa Para Sa Bagong Pilipinas Inc. and the Bayan Muna party-list group questioning the 2015 resolutions of the ERC that postponed the implementation of its own policy requiring the competitive selection process for the PSAs.
Meanwhile, the Manila Electric Company said its customers in select areas will experience power interruptions this week as it is set to undertake reconstruction works.
The high court ruled that the ERC committed grave abuse of discretion in issuing Resolutions No. 13 and No. 1 that postponed the implementation of Circular No. DC2015-06-0008, which mandated all distribution utilities to undergo CSP in securing PSAs.
ERC Resolution No. 13 no longer required a CSP for PSAs already filed with the ERC on or before Nov. 7, 2015, while Resolution No. 1 postponed the implementation of the CSP requirement to April 30, 2016.
The high court ruled that the authority of the ERC was limited to the implementation of the CSP and that the ERC had no power and authority to postpone the CSP’s application that became effective on June 30, 2015.
“The ERC’s delegated authority is limited to implementing or executing Competitive Selection Process in accordance with the 2015 DOE Circular, not postponing CSP so as to freeze CSP for at least 20 years, effectively suspending CSP for one entire generation of Filipinos,” read the ruling written by Senior Associate Justice Antonio Carpio.
“The delegated authority to implement CSP does not include the authority to postpone or suspend CSP for 20 years, beyond the seven-year terms of office of the ERC Commissioners postponing or suspending the CSP, and beyond the seven-year terms of office of their next successors, as well as beyond the six-year terms of office of three Presidents of the Republic.”