ERC to Request California to Reconsider Decision

The Energy Regulatory Commission (ERC) plans to appeal the Court of Appeals (CA) decision that overturned the denial of rate hike petitions from Manila Electric Co. (Meralco) and San Miguel Corp. (SMC) subsidiaries. In a statement, the ERC expressed its intention to file a motion for reconsideration with the CA, hoping that the court will review the case records and arguments and ultimately support the commission’s ruling.

In June, the CA 13th Division ruled that the ERC had acted with “grave abuse of discretion” when it rejected the rate hike petitions for a P0.30 per kilowatt-hour increase due to rising operating costs. Despite the CA’s decision, ERC Chair Monalisa Dimalanta clarified that Meralco rates will not be affected until the final resolution is reached. She also stated that the ERC may escalate the matter to the Supreme Court.

Furthermore, the ERC seeks clarification on the CA ruling, specifically whether the CA has the authority to address legal issues related to the Meralco-SMC rate hike appeal. Dimalanta highlighted that according to Supreme Court (SC) decisions, the SC should be responsible for such issuances.

San Miguel Global Power (SMGP) welcomed the CA’s decision, emphasizing that it upholds the principle of due process that guarantees fair treatment by quasi-judicial bodies like the ERC. SMGP expressed regret over the ERC’s initial rejection of the rate hike petition and its subsequent burden on consumers with higher electricity rates. Meralco echoed this sentiment, stating that the CA decision supports their belief that the rate adjustment was the least costly option for customers.

To conclude, the ERC will challenge the CA’s decision and seek clarification on its jurisdiction, while SMGP and Meralco appreciate the CA’s ruling as it aligns with their position on the rate hike.

Reference

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