SC clears ERC, PEMC deal to probe WESM

By Rey E. Requejo

THE Supreme Court has sustained the ruling issued by the Court of Appeals which declared valid the memorandum of agreement (MOA) between the Energy Regulatory Commission (ERC) and the Philippine Electricity Market Corporation (PEMC) allowing the latter to investigate energy sector participants for possible breaches of the Wholesale Electricity Spot Market (WESM) rules and manuals.

In a 12-page decision written by Associate Justice Marvic Leonen, the SC’s Second Division denied the petition filed by the Power Sector Assets and Liabilities Management Corporation (PSALM) seeking the nullification of the agreement as well as its accompanying protocol.

The high court’s ruling affirmed the 2009 findings of the appellate court which held that the PEMC has the power to investigate possible breaches of the rules governing WESM. The CA also ruled that the ERC did not unduly delegate its powers in the assailed memorandum and protocol with PEMC.

The CA noted that under the rules and regulations of the Electric Power Industry Reform Act (EPIRA), the Department of Energy together with the industry players were mandated to formulate rules for WESM.