OSG asks Supreme Court to annul Court of Appeal’s ruling on San Miguel power unit’s supply deal

By Alena Mae S. Flores

THE Office of the Solicitor General on Friday filed with the Supreme Court a petition for certiorari to annul the resolutions of the Court of Appeals’ 13th Division in favor of South Premiere Power Corp.

The CA resolutions, dated April 3, 2023 and Jan. 25, 2023, granted SPPC’s bid for injunctive relief to stop the Energy Regulatory Commission from enforcing a Sept. 29, 2022 order. Such order denied SPPC’s motion for an electricity price increase in its power supply agreement with Manila Electric Co. SPPC, a subsidiary of San Miguel Corp., signed the PSA with Meralco in 2019.

The ERC said in a statement the OSG petition, with a prayer for the issuance of a temporary restraining order or writ of preliminary injunction, claims that the CA 13th Division committed grave abuse of discretion when it gave due course to SPPC’s case in spite of fatal procedural defects, such as the absence of the required motion for reconsideration in the ERC and the improper remedy of petition for certiorari when an appeal would have been the appropriate course of action.

It said the OSG argued that only the SC has the authority to issue injunctions over the implementation of the Electric Power Industry Reform Act of 2001.

The OSG said the CA 13th Division exceeded its authority when it instructed SPPC and Meralco to engage in renegotiations for their PSA.

It said the CA Division’s order violated the mandates of the Department of Energy and the ERC, both of which are the agencies responsible for implementing the laws and regulations related to PSAs.

The ERC through the OSG also previously opposed the CA decision consolidating the cases filed by SMC subsidiaries on its 2019 PSA with Meralco.

The CA’s 16th Division denied the request for a temporary retaining order by San Miguel Energy Corp., but ruled that the subject case should be consolidated with an- other case with similar facts filed by SPPC pending before the 13th Division.

The companies filed for a temporary rate hike with the ERC based on the change in circumstances, which the regulator denied. This prompted the companies to ask for a TRO and writ of injunction from the CA.

The CA’s 13th Division’s granted a WPI to SPPC on its 2019 power supply agreement with Meralco involving 670 megawatts of supply. The WPI enjoins Meralco from implementing the order of the ERC to honor their fixed-rate PSA.

As a consequence of the decision, SPPC could not be compelled to continue to supply Meralco under the PSA.

Bersamin signed the MC on June 20, 2023 on behalf of President Ferdinand Marcos Jr.

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