Supreme Court Power Supply Agreement

In launching the petition, the Supreme Court found that the ERC had committed a serious misuse of its assessment by unilaterally deferred the effectiveness of the PSC requirement through various resolutions. The Supreme Court stated that the ERC`s authority was limited to the implementation of the PSC and that the ERC was not competent and empowered to defer the PSC`s application. In other words, the ERC`s delegated authority is limited to the implementation of PSCs in accordance with the 2015 DOE circular, not to the postponement of the PSC to freeze the PSC for at least 20 years, which virtually suspends PSCs for a whole generation of Filipinos. With regard to the question of the competition selection procedure (“CSP”) on electricity generation, the Supreme Court decided at its special session of the En Banc on 3 May 2019 that all energy supply agreements (“DU”) submitted by Distribution Utilities (“DU”) to the Energy Regulatory Commission (ERC) on 30 June 2015 must be submitted to a CSP. The Supreme Court stated that the ERC`s authority was limited to the implementation of the PSC and that the ERC was not competent and empowered to defer the PSC`s application. “We have submitted letters of intent for two – wasteland and average salary,” said Emmanuel V. Rubio, Chief Operating Officer of AboitizPower, reporters after the solemn signing of the company`s retail electricity supply contract with SM Prime Holdings, Inc. To obtain an opinion, the DoE stated that the decision would now allow the continuation of outstanding power plant projects. In a July 23 resolution, the SC “definitely” rejected the ERC and Panay Energy Development Corporation`s request for the original May 3 Supreme Court decision on the matter. The Commission argued that it had not committed any serious abuse of judgment in the granting of the two resolutions, as it had “quasi-legislative powers” to set rules and regulations.

The Supreme Court has ruled that all PPE applications submitted to or after the Energy Regulatory Commission on 30 June 2015 must meet the requirements of the Competitive Measures Competition. CSP requires that these contracts between energy companies and distributors be suspended from price companies, a process aimed at reducing electricity costs. “With our continued expansion in the coming years, we need an electricity supplier that allows us to support our existing and future partners with reliable and cost-effective performance. We believe that AboitizPower, with its extensive power generation facilities, can deliver what we are looking for,” said Jeffrey C. Lim, President of SM Prime Holdings. They stated that by extending the PSC deadline from November 2015 to April 2016, ERC had enabled Meralco to enter into seven PSAs with its connected power generation companies and attach it to 3,551 megawatts, or 90 per cent of its deliveries, to 20-year contracts that would cost consumers 12.44 billion P12.44 billion per year. In addition, the Court noted that electricity purchase costs are retroactive after compliance with the PSC on the PSA`s effectiveness date, “but under no circumstances prior to June 30, 2015, in order to pass on the cost of acquisition to consumers.” The court responded to a November 2016 petition by consumer group Alyansa Para sa Bagong Pilipinas, Inc.