It’s final: SC orders rebidding of power supply deal

MANILA, Philippines — The Supreme Court has affirmed with finality its May 2019 ruling ordering the Energy Regulatory Commission (ERC) to conduct a competitive selection process (CSP) on all power supply agreements (PSAs) submitted by distribution utilities on or after June 30, 2015.

In a two-page resolution, the high court denied the separate appeals filed by the Office of the Solicitor General (OSG) on behalf of the ERC and the Panay Energy Development Corporation (PEDC) for their failure to raise new arguments that would warrant the reversal of its decision.

“Acting on the following motions for reconsideration of the decision dated May 3, 2019, the Court resolved, by the same vote and with Associate Justice Henri Jean Paul Inting joining the majority, to deny with finality the said motions for reconsideration as the basic issues raised therein have been passed upon by this Court and no substantial arguments were presented to warrant the reversal of the questioned decision,” the Court ruled.

In its May 3, 2019 decision, the Court held that the ERC gravely abused its discretion when it unilaterally postponed the effectivity of the CSP requirement by issuing ERC Resolution No. 13 and ERC Resolution No. 1. 

The CSP rules requires power distributors to get at least two offers for supply of electricity before awarding a PSA, ensuring the least cost for electricity consumers.

The Court pointed out that the authority of the ERC was limited only to the implementation of the CSP, and that the ERC had no power and authority to postpone the CSP’s application.

Because of the high court’s ruling, all PSA applications submitted by the DUs on or after June 30 2015 were required to comply with the CSP in accordance with 2015 circular issued by the Department of Energy (DOE).

The 2015 DOE Circular, which became effective on June 30, 2015, mandated all DUs to undergo CSP in securing PSAs. /je

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SC orders rebidding of power supply deal