The Energy Regulatory Commission, through the Office of the Solicitor General, asked the 17th Division of the Court of Appeals to deny San Miguel Energy Corp.’s application for a temporary restraining order or injunction on its 2019 supply deal with Manila Electric Co.
SMEC applied for the TRO to question the ERC order dated Sept. 29 denying its motion for price adjustment and directing it and the Manila Electric Co. to uphold the fixed price and the provisions of a 2019 power supply agreement.
ERC cited the 34-page opposition of the OSG, emphasizing that CA’s 17th Division has no jurisdiction to issue a TRO because it is only the Supreme Court that could restrain the implementation of the Electric Power Industry Reform Act of 2001.
“OSG asserts that ERC merely exercised its consumer protection mandate and enforced the distribution utilities’ obligation to supply electricity in the least cost manner when it upheld the fixed price and other contractual provisions of the PSA between SMEC and the Meralco,” the ERC said.
The CA’s 14th Division earlier issued a TRO suspending the implementation of the PSA between South Premier Power Corp., another San Miguel subsidiary, and Meralco.
The OSG also said a grant of injunctive relief, especially if implemented as a suspension of the SMEC–Meralco PSA, would prejudge the merits of SMEC’s petition for certiorari.
The OSG said SMEC’s prayer is for the CA to nullify ERC’s order enjoining Meralco and SMEC to strictly adhere to the fixed price and financial nature of the agreement.
“A grant of TRO or suspension of the implementation of the PSA will effectively allow SMEC to obtain its ultimate prayer, that is, to be relieved of its obligation to supply under the contract,” the regulator said.
The OSG said there were fatal procedural lapses in SMEC’s petition.
It said SMEC’s petition should be dismissed as the case should have been elevated to the CA through an appeal –a remedy already unavailable to SMEC due to the lapse of time to file.
It said SMEC’s petition should also be dismissed for its failure to file the mandatory motion for reconsideration with the ERC before elevating the issue to the CA.
“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,” the regulator said.