The Supreme Court denied with finality an appeal filed by the Energy Regulatory Commission (ERC) against a rate hike petition by San Miguel Corp.’s subsidiaries and Manila Electric Co.
SMC said in a disclosure to the Philippine Stock Exchange Tuesday it received a copy of the Supreme Court’s First Division resolution on Sept. 2 through its legal counsel. The ruling rejected the ERC’s motion for reconsideration of an earlier decision and its request for a temporary restraining order or writ of preliminary injunction.
“Considering that there is no substantial argument to warrant a modification of this court’s resolution, the court further resolved to deny reconsideration with finality,” the Supreme Court said.
The high court’s decision affirms a Court of Appeals ruling that upheld SMC’s right to invoke a “change in circumstance” clause in its power supply agreements.
ERC chairperson Monalisa Dimalanta said the agency had not yet received a copy of the decision and would consult with the Office of the Solicitor General.
The case stemmed from the ERC’s decision to deny SMC-Meralco’s plea for a rate hike, citing a lack of legal and factual basis. SMC appealed the decision to the Court of Appeals, which overturned the ERC’s ruling. The ERC then brought the matter to the Supreme Court.
The ERC claimed there was no legal and factual basis to grant the requests made jointly by Meralco and SPPC and Meralco and SMEC to increase the rates charged to consumers under the respective PSAs.
