CA orders ERC's Dimalanta to inhibit from NGCP's rate reset proceedings

The Court of Appeals (CA) has ordered Energy Regulatory Commission (ERC) Chairperson Monalisa Dimalanta to inhibit herself from participating in the proceedings for the resolution of the rate reset application of National Grid Corporation of the Philippines (NGCP).

In a 22-page decision dated April 30, 2025, the CA's Special 11th Division, acting on the petition for certiorari filed by NGCP, granted the grid operator's motion for inhibition, further ruling that Dimalanta "should have recused herself from further participating" in the 4th Regulatory Period (RP) Reset Application of the country's transmission grid operator.

"We find that respondent gravely abused her discretion when she refused to inhibit from the proceedings a quo despite her evident bias and partiality against the petitioner," the CA decision stated.

Sought for comment about the CA ruling, Dimalanta told GMA News Online, "I have yet to receive a copy of this."

In seeking certiorari, the NGCP cited Dimalanta's series of public statements that demonstrated she already "prejudged" its 4th RP Reset Application even before the application had been filed "as evidenced by news articles citing that NGCP rates are expected to go down."

Last April, the ERC announced that it has completed the fourth regulatory period rate reset for NGCP, allowing the grid operator to recover nearly P30 billion in under-recoveries.

NGCP's 4th RP rate reset process was earlier described by the ERC as "unlike other periods" as it covers historical data on the company's expenditures and performance.

The regular rate-reset process is usually a forward-looking exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period.

The CA, meanwhile, said in its decision that "Dimalanta's declarations showed that she already had a preconceived result in mind, that is, the reduction of transmission charges and its inaction on the motions filed displayed bias and prejudice against the petitioner."

The appellate court ruled that the ERC chief was fully aware that NGCP had yet to file its 4th RP Reset Application "when she made public statements, which proved that she had already prejudged the result of the proceedings."

"Respondent could not be expected to render a fair judgment when she already has an outcome in mind, waiting only to be formalized after petitioner undergoes the charade of formal hearing. By issuing premature public statements, respondent somehow deprived petitioner of its right to a fair and impartial administrative process," a part of the decision read.

In September 2022, the ERC issued the Rules for Setting Transmission Wheeling Rates, where NGCP was required to submit its expenditures under its 4th RP Reset covering the years 2016 to 2022.

The following month, the CA ruling said, Dimalanta held a press briefing on the expected result of the reset process. NGCP filed its 4th RP Reset Application in December 2022. — VDV, GMA Integrated News