SC issues TRO on DOE, ERC rules on retail competition, open access

The Supreme Court (SC) on Tuesday stopped the Department of Energy (DOE) and Energy Regulatory Commission (ERC) from implementing relatively recent rules on retail competition and open access.

The temporary restraining order (TRO) was issued following the petition recently filed by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo De Manila University, and Riverbanks Development Corp.

"The Court noted that petitioners have established a clear, legal right to the TRO considering that the EPIRA Law (Electric Power Industry Reform Act) provides for the voluntary migration of end-users to the contestable market and there appears to be no basis for the mandatory migration being ordered by the DOE and the ERC through the questioned issuances," the SC Public Information Office said.

The SC also deemed the issuance of TRO as urgent due to the February 26 deadline imposed by ERC for end-users to enter into a retail supply contract with accredited retail electricity suppliers.

"If a TRO is not issued, the petition will become moot and petitioners stand to suffer grave and irreparable injury because they will be disconnected from the distribution utility or made to pay a supplier of last resort a 10 percent premium between the higher contract cost and the Wholesale Electricity Spot Market," the high court said.

Under the RCOA regime, end users are allowed to choose their own power suppliers in a bid to foster competition.

Challenged before the SC are the following issuances on the grounds of usurping legislative authority, violating the petitioners' right to process and equal protection and the non-impairment clause of the 1987 Constitution as well as for being an unreasonable exercise of police power. 

• *DOE Circular No. DC2015-06-0010 (Providing Policies to Facilitate the Full Implementation of Retail Competition and Open Access (RCOA) in the Philippine Electric Power Industry;
• *ERC Resolution No. 05 Series of 2016 (A Resolution Adopting the 2016 Rules Governing the Issuance of Licenses to Retail Electricity Suppliers (RES) and Prescribing the Requirements and Conditions Therefor);
• * ERC Resolution No. 10 Series of 2016 (Adopting the Revised Rules for Contestability);
• *ERC Resolution No. 11 Series of 2016 (Imposing Restrictions on the Operations of Distribution Utilities and Retail Electricity Suppliers in the Competitive Retail Electricity Market; and
• * ERC Resolution No. 28 Series of 2016 (Revised Timeframe for Mandatory Contestability, Amending Resolution No. 10)

—NB, GMA News