Metro Manila (CNN Philippines, July 13) — The Court of Appeals (CA) has voided the decision of the Energy Regulatory Commission denying the joint rate hike petitions of Manila Electric Co. (Meralco) and listed conglomerate San Miguel Corp. (SMC).
SMC made the last part of the CA ruling public through its disclosure on Wednesday, which showed that the court sided with the group’s power units South Premiere Power Corp. (SPPC) and San Miguel Energy Corp. (SMEC).The company said the decision by the 13th Division of the CA, dated June 27, has granted the consolidated petitions of SPPC and SMEC.The CA stated that ERC’s ruling in September 2022 is annulled and set aside, arguing that it was issued “with grave abuse of discretion amounting to lack or excess of jurisdiction.”In August 2022, SMC and power distributor Meralco sought a temporary price increase, claiming losses recorded due to skyrocketing oil prices amid the war between Ukraine and Russia.The energy regulator, however, rejected their plea, citing that millions of consumers in Metro Manila and parts of Central Luzon and Calabarzon would be affected by the proposed price adjustments.SMC then brought the fight to the CA, seeking to reverse the ERC’s decision.
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As the ERC ruling was overturned, the CA also granted the joint motions for a price adjustment for SPPC (from June 2022 to January 25, 2023) and SMEC (from June 2022 to date).
San Miguel Global Power (SMGP), the energy arm of SMC, welcomed the decision on Thursday, saying it “upholds the constitutional mandate of due process that guarantees the right to be treated fairly and effectively by quasi-judicial bodies like the ERC…”
It added in a statement that the CA ruling “assure[s] a fair and balanced regulatory environment that equally protects the rights and interests of all stakeholders involved.”
SPPC and SMEC are subsidiaries of SMGP.
Both SMGP and Meralco said their petition for a temporary power rate hike was “the least cost option” for consumers.
“It is regrettable that the ERC’s unfair decision early on to reject our joint petition with Meralco for a temporary rate hike… resulted in consumers shouldering the burden of much higher electricity rates,” SMGP said.
The company assured the public that it would explore ways to soften the burden of the “current power crisis.”
Meralco also reacted to the CA decision, noting that while it upheld the firm and SMC’s position, there were “some matters that we feel need to be clarified.”
The power distributor said it is in discussion with its legal team, hinting at the possibility of appealing the issue to the Supreme Court.
