Professional Documents
Culture Documents
NERI JAVIER COLMENARES and CARLOS ISAGANI ZARATE, GABRIELA WOMENS PARTY REPS. LUZ ILAGAN and EMMI DE JESUS, ACT TEACHERS PARTY-LIST REP. ANTONIO TINIO, and KABATAAN PARTYLIST REP. TERRY RIDON, Petitioners -versusGR No. 2102 ! Petition for Certiorari an" Prohibition #ith Application for a $e%porar& Restrainin' (r"er an")or Preli%inar& *n+unction
ENERGY REGULATORY COMMISSION ERC! AND MANILA ELECTRIC COMPANY MERALCO!, Respondents. ---------------------------------------------------------
PETITION "OR CERTIORARI AND PROHIBITION .*$/ PRA0ER 1(R A $EMP(RAR0 RE2$RA*N*NG (R3ER AN3)(R PRE4*M*NAR0 *N56NC$*(N
Petitioners, b& counsel, unto this /onorable Court %ost respectfull& aver7
PE$*$*(NER2 i. Ba&an Muna Representatives N#$% Ja&%#$ C'()#na$#* an" Ca$('* I*a+an% Za$a,#8 Gabriela .o%en9s Part& Representatives L-. I(a+an an" E))% D# J#*-*8 AC$ $eachers Part& Representative An,'n%' T%n%'8 an" :abataan Part&-list Representative T#$$/ R%d'n8 are all present %e%bers of, an" are hol"in' office at, the /ouse of Representatives. $he& are also all Meralco subscribers resi"in' in Metro Manila affecte" b& the rate hi;e. $he& %a& be serve" #ith processes of this /onorable Court at the a""ress of the un"ersi'ne" counsel belo#. RE2P(N3EN$2 ii. $he En#$+/ R#+-(a,'$/ C'))%**%'n ERC!, is the re'ulator& a'enc& %an"ate" to <pro%ote co%petition, encoura'e %ar;et "evelop%ent, ensure custo%er choice an" penali=e abuse of %ar;et po#er in the restructure" electricit& in"ustr&.>1 *t has office a""ress at Pacific Center Buil"in', 2an Mi'uel Ave. (rti'as Center Pasi' Cit&, #here it %a& be serve" #ith court process8 iii. Man%(a E(#0,$%0 C')1an/ M#$a(0'! is the lar'est electric "istribution utilit& in the Philippines. *t has office a""ress at (rti'as Pasi' Cit&, #here it %a& be serve" #ith court process. NATURE O" THE PETITION 1. $his is a special civil action for Certiorari an" Prohibition, brou'ht un"er Rule ?! of the 1@@A Rules of Civil Proce"ure, to assail B1C ERC9s approval of Meralco9s proposal to pass on to consu%ers the increase in the 'eneration cost for Nove%ber 201D an" B2C 2ections ? an" 2@ of Republic Act @1D?, An Act Ordaining Reforms in the Electric Power Industry, Amending for the Purpose Certain Laws and for Other Purposes BElectric Po#er *n"ustr& Refor% Act of 2001, or hereinafter, the EP*RAC. 2. $o prevent %anifest in+ustice an" ineEualit&, Petitioners also pra& for the issuance of a $e%porar& Restrainin' (r"er to en+oin the enforce%ent until final +u"'%ent of the fore'oin' assaile" act of ERC an" 2ections of the EP*RA.
1
JURISDICTIONAL AVERMENTS D. Petitioners invo;e this /onorable Court9s po#er to stri;e "o#n la#s an" re'ulations as inconsistent #ith the 1@FA Constitution. $he& also invo;e this Court9s po#er of +u"icial revie# un"er 2ection 1, Article G*** of the 1@FA ConstitutionHthat is, <to "eter%ine #hether or not there has been 'rave abuse of "iscretion a%ountin' to lac; or e-cess of +uris"iction on the part of an& branch or instru%entalit& of the Govern%ent.>
. $his Petition co%plies #ith all the follo#in' reEuisites for +u"icial revie# per +urispru"ence7 a. an actual case or controvers& callin' for the e-ercise of +u"icial po#er8
b. the stan"in' to Euestion the vali"it& of the sub+ect act or issuance, that is, a personal an" substantial interest in the case such that the part& brin'in' the suit has sustaine", or #ill sustain, "irect in+ur& as a result of its enforce%ent8
". the issue of constitutionalit& is the ver& lis mota of the case. BLa Bugal-B laan !ri"al Association #$ %ictor O$ Ramos BG.R. No. 12AFF2, 2A 5anuar& 200 C
!. $he po#er rate hi;e that ta;es effect fro% the 3ece%ber billin' an" until March of ne-t &ear is an e-istin' case or controvers& appropriate or ripe for the Court9s "eter%ination. *t is neither con+ectural nor anticipator&, as this hi;e is in fact no# reflecte" in the electric bills of Meralco consu%ers, a"%itte" b& Respon"ents "urin' the 10 3ece%ber 201D public hearin' of the /ouse of Representatives Co%%ittee on Ener'&, an" reporte" in the %e"ia. $he ERC, b& letter to MERA4C( 1irst Gice Presi"ent an" /ea" *vanna "ela PeIa "ate" @ 3ece%ber 201D, approve" the assaile" sta''ere" rate hi;e, a fact #hich %ust be ta;en +u"icial notice b& this Court.
Petitioners are consu%ers resi"in' #ithin the franchise area 'rante" to Meralco un"er Republic Act @20@ 2 Bhereinafter, the 1ranchiseC. As such en"-users of the electric po#er "istribute" b& Meralco, the& are the ones #ho "irectl& suffer the costl& electric bills fro% 3ece%ber 201D to March 201 .
6.
A. Petitioners possess personal an" substantial interest in the ensurin' that Meralco fulfils its responsibilit& to the public of suppl&in' electricit& in the least cost %anner B2ection , R.A. @20@ an" 2ection 2D, R.A. @1D?C, an" that the ERC 'uarantees that it "oes. F. *n Petitioners9 representative an" personal capacities, the& are a%on' the esti%ate" .A %illion %e%bers of Meralco9s captive %ar;et as "efine" in EP*RA. Bein' Part&-4ist Representatives as #ell, the& stan" before this Court on behalf of their constituents #ho resi"e in the cities an" %unicipalities #ithin Meralco9s franchise area.
@. $his Petition raises the constitutional issues at the earliest opportunit&. $his Court has rule" that this <opportunit&> is at the point of a plea"in' before a co%petent court. D $he assaile" act of ERC in <'rantin' MERA4C( the clearance - - - to sta''er i%ple%entation of its 'eneration cost recover&> #as "one throu'h a %ere letter, not b& a final or"er, resolution, or "ecision #hich can be the sub+ect of a %otion for reconsi"eration to the ERC un"er Rule 2D of its Rules of Practice an" Proce"ure. $here #as no <procee"in' belo#> that coul" have enable" Petitioners to assail before ERC the le'alit& of its act, or clothe" it #ith co%petence to ans#er the sa%e. 10. 1urther%ore, 2ection AF of EP*RA also states that <JtKhe i%ple%entation of the provisions of this Act shall not be restraine" or en+oine" e-cept b& an or"er issue" b& the 2upre%e Court of the Philippines.> 11. Petitioners rel& on the +uris"iction of this /onorable Court to stri;e "o#n la#s an" acts as unconstitutional. $hou'h this +uris"iction is e-ercise" concurrentl& #ith Re'ional $rial Courts an" the Court of Appeals, Petitioners believe that "irect an" ur'ent resort
An Act Granting the Manila Electric Company a Franchise to Construct, Operate and Maintain a Distribution System for the Conveyance of Electric o!er to the End"#sers in the Cities$Municipalities of Metro Manila, %ulacan, Cavite and &i'al, and Certain Cities$Municipalities$%arangays in %atangas, (aguna, )ue'on and ampanga, 9 June 2003 3 Matibag v* %enipayo, G.R. No. 149036, 2 April 2002
2
to the hi'hest Court of the lan" is #arrante" consi"erin' B1C the brea"th of authorit& of the ERC to re'ulate the po#er in"ustr& in the entire countr&, B2C Meralco9s franchise enco%passes a #i"e area coverin' at least four Re'ions, affectin' nearl& five %illion consu%ers, an" BDC the a%ount passe" on to consu%ers over four %onths is at least P2!.? billion, translatin' to an a""itional 'eneration char'e of PA.?A per ;#h for each househol" in 3ece%ber. 12. A rulin' on the constitutionalit& of EP*RA provisions is in"ispensable to the resolution of the controvers&8 this case cannot be "ispose" of on a 'roun" other than the constitutionalit& of the assaile" provisions. 1D. Assu%in' arguendo that this Petition fails in an& of the above reEuisites, Petitioners assert that revie# b& this Court is nevertheless proper in the na%e of transcen"ental public interest. $his instant case, thou'h havin' onl& Meralco consu%ers as the i%%e"iate victi%s, is "irectl& relate" to the 2tate polic& of protectin' the interest of the public in the entire countr& #ho use electricit&, an" of ensurin' the <affor"abilit& of the suppl& of electric po#er> an" <transparent an" reasonable prices of electricit& - - - an" full public accountabilit&> of businesses "ealin' in an i%%ensel& vital public service. 1 . Petitioners further plea" that this Court e-ercise soun" "iscretion an" rule that it is its "ut& to pass on the constitutional Euestions herein "espite this "irect resort, as the "eter%ination of these Euestions is necessar& to a "ecision of the case. !
"ACTS 1!. *n a 4etter "ate" 3ece%ber !, 201D, respon"ent Meralco infor%e" respon"ent ERC that the total cost of 'eneration to be passe" on to its al%ost ! %illion captive custo%ers a%ounte" to P22.? Billion, eEuivalent to a 'eneration char'e for 3ece%ber 201D billin' of P@.10A0 per ;#h. $his #ill result to an increase of P .1! per ;.h for resi"ential custo%ers. 1?. *n the sa%e 4etter, MERA4C( clai%e" that the abrupt increase in the 'eneration cost #as the suppose" %aintenance shut"o#n of the Mala%pa&a facilit& that supplies natural 'as to three BDC %a+or po#er plants L *li+an, 2an 4oren=o an" 2ta Rita L #hich suppl& an a''re'ate capacit& of 2A00 M. electricit& to its franchise area. *t also sai" that the shut"o#n of Mala%pa&a coinci"e" #ith the sche"ule" %aintenance of t#o B2C other plants, Pa'bilao 2 an" 2ual 1, #hich also collectivel& contribute over @!0 M. to its reEuire%ents.
4 "
Section 2, Chapter I of !IRA eople v* +era, G.R. No. #$4"6%", 16 No&e'(er 193" "
1A. $o suppose"l& %iti'ate the effects of this unprece"ente" increase in the 'eneration cost, Meralco propose" to ERC a sta''ere" rate hi;e to be "istribute" in the %onths of 3ece%ber 201D an" 1ebruar& 201 . /o#ever, since "eferrin' the secon" tranche to 1ebruar& 201 #oul" result to incurrin' a carr&in' cost, Meralco further propose" that it be allo#e" to recover the carr&in' cost atten"ant to the "eferral. 1F. Meralco then then reEueste" clearance fro% the ERC to7 i. Collect a 'eneration char'e of PA.@0 per ;#h in its 3ece%ber 201D billin's to its custo%ers8 an" ii. 3efer to 1ebruar& 201 the recover& of Php D Billion, representin' a portion of the 'eneration costs for the suppl& %onth of Nove%ber 201D not passe" on to custo%ers in 3ece%ber 201D, sub+ect to inclusion of the appropriate carr&in' char'e. A cop& of the aforesai" 4etter "ate" 3ece%ber !, 201D is hereto attache" as ANNE2 3A4. 1@. Mean#hile, reactin' on Meralco9s plans, Petitioners Col%enares an" Marate of Ba&an Muna Part&-list file" on 3ece%ber ?, 201D /ouse Resolution No. !FF callin' the /ouse of Representatives to investi'ate the unprece"ente" planne" po#er rate increase b& Meralco. A cop& of the /ouse Resolution is hereto attache" as ANNE2 3B4. 20. $he /ouse Co%%ittee on Ener'& then i%%e"iatel& inclu"e" in its a'en"a an" sche"ule" the start of the investi'ation on /R No. !FF on 3ece%ber 10, 201D. 21. /o#ever, on 3ece%ber @, 201D, respon"ent ERC approve" the Meralco proposal. *n a 4etter "ate" 3ece%ber @, 201D, ERC rule" L <Accor"in'l&, MERA4C( is authori=e" to i%ple%ent a 'eneration char'e of PhP A.?A);.h in its 3ece%ber 201D billin' an" a"" to its calculate" 'eneration char'e for 1ebruar& 201 billin' the 'eneration rate of PhP 1.00);.h. $he balance on the "eferre" 'eneration a%ount #ithout an& carr&in' cost shall be inclu"e" in MERA4C(9s 'eneration char'e for March 201 . 2houl" MERA4C( see; to recover its carr&in' costs on the entire "eferre" a%ount, it shall file a for%al application for this.
6
$he fore'oin' shoul" not in an& #a& be construe" as a confir%ation of MERA4C(9s 'eneration costs incurre" in Nove%ber 201D, #hich shall re%ain sub+ect of the confir%ation an" post-verification procee"in's in accor"ance #ith the applicable ERC resolution on the %atter.> A cop& of the aforesai" 4etter "ate" 3ece%ber @, 201D is hereto attache" as ANNE2 3C4. 22. Nonetheless, "urin' the 3ece%ber 10 /ouse Co%%ittee hearin', 3epart%ent of Ener'& 6n"ersecretar& Raul A'uilos a"%itte" that the "epart%ent is investi'atin' the possible collusion a%on' the po#er pro"ucers in the si%ultaneous an" unplanne" shut"o#n of the po#er plants. i. (n March 2012 the 3epart%ent of Ener'& #as infor%e" b& 2hell Philippines E-ploration B.G. B2PENC #ho operates the Mala%pa&a Gas to Po#er Pro+ect of its planne" %aintenance shut"o#n calle" <Mala%pa&a $urnaroun">, sche"ule" on Nove%ber 1 to 3ece%ber F, 201D. $his sche"ule #as later %ove" b& 2PEN to Nove%ber @-3ece%ber F, 201D an" subseEuentl& resche"ule" to Nove%ber 11 to 3ece%ber 10, 201D. ii. Base" on a 3(E report, Mala%pa&a previousl& shut"o#n its operations for alle'e"l& for %aintenance activities, specificall& on the follo#in' perio"s7 2hut"o#n for A "a&s on (ctober 20 to 2?, 2011 for preventive %aintenance 2hut"o#n for D "a&s on 5une F to 11, 2012 2hut"o#n for F "a&s on 5ul& 1D to 20, 2012 Pro+ecte" shut"o#n for DF "a&s fro% Nove%ber 1 to 3ece%ber F, 201D iii. (n 5ul& D0, 201D, the 3(E con"ucte" a %eetin' #ith 2PEN an" concerne" ener'& a'encies an" suppose" sta;ehol"ers such as Meralco in preparation for the sche"ule" <Mala%pa&a turnaroun">. $#o %ore coor"ination %eetin's #ith the above %entione" parties #ere subseEuentl& hel", one on Au'ust 1?, 201D an" another on
Nove%ber , 201D all inten"e" to ensure a reliable suppl& of ener'& "urin' the shut"o#n. iv. A%on' the a'ree%ents for'e" b& the parties "urin' these %eetin's #ere7 *n"epen"ent po#er pro"ucers #ill ensure the availabilit& of their %a+or po#er plants in Mala&a, Pa'bilao an" CB: #ith Mala&a runnin' at ?10 M.. Meralco si'ne" a po#er suppl& a'ree%ent #ith $her%a Mobile to shiel" the consu%ers fro% bein' "epen"ent on the e-pensive rates in the .E2M. v. *n the Nove%ber , 201D %eetin', it #as a'ree" that the *li+an Bloc; A #ill 'enerate 20 M. fro% Nove%ber @ to 3ece%ber D, 201D8 #hile Mala&a 62 #ill 'enerate D!0 M. an" Mala&a 61 at 2?0 M.. vi. Garious plants on the other han" reporte" that the& #ill also sche"ule their o#n respective <%aintenance> shut"o#ns, specificall&, Pa'bilao 6nit 2 on D1 Au'ust to 1D Nove%ber 201D8 *li+an Bloc; B on @ Nove%ber to 1? 3ece%ber 201D an" Calaca 6nit 2 on 1 3ece%ber 201D to 2F 1ebruar& 201 . 2an 4oren=o 1, #ith a suppose" capacit& of 2?! M., also #ent on %aintenance outa'e until 3ece%ber 10, 201D. $hese %aintenance shut"o#ns overlap #ith each other. vii. 2tran'el&, Mala&a 6nit 1 an" 6nit 2, "espite the a'ree%ent "urin' the coor"ination %eetin's, "i" not operate for the #hole %onth of Nove%ber an" onl& "elivere" ener'& suppl& on 3ece%ber 2 an" at a lesser capacit&, at the tail en" of the Mala%pa&a shut"o#n. viii. Pa'bilao 6nit 2 "i" not 'o on %aintenance outa'e on Au'ust D1 as it initiall& state", but "ela&e" the sa%e to Nove%ber, thereb& failin' to "eliver the suppl& it previousl& co%%itte" to because, alle'e"l& of a <tube lea;>. i-. Pa'bilao 6nit 1 #ent on unannounce" outa'e on Nove%ber 2@ also failin' to "eliver the suppl& it previousl& co%%itte" to, also "ue to an alle'e" <tube lea;>.
-. $her%a Mobile #hich #as contracte" b& Meralco for its 2DF M. ener'& suppl& for a price of PF.?! per ;#h "urin' the Mala%pa&a shut "o#n onl& "elivere" a "rasticall& re"uce" @0 M. suppl& an" sol" the rest of its capacit& to .E2M for a price three ti%es its contract #ith Meralco. -i. Mean#hile GN Po#er 6nit 2, su""enl& shut"o#n too on Nove%ber 2A, 201D clai%in' that, li;e the Pa'bilao 6nit 1 an" Pa'bilao 6nit 2, it also has a <tube lea;>. -ii. Garious plants su""enl& announce" outa'e, na%el& *li+an Bloc; B, Calaca 6nit 2, 2an 4oren=o 1 all coinci"in' #ith perio" of the Mala%pa&a shut"o#n. (nl& Pa'bilao 6nit 2 announce" an outa'e #hich #ill start on Au'ust D1 #hich is a bit earlier than the Mala%pa&a shut"o#n perio". 2urprisin'l&, it "eci"e" to hol" its previousl& announce" shut"o#n at a %uch later perio", #hich b& then coinci"e" #ith the Mala%pa&a shut"o#n in Nove%ber. -iii. (n the other han", %an& plants na%el& Mala&a 6nit 1 an" 6nit 2, Pa'bilao 6nit 1 an" even Pa'bilao 6nit 2 #hich, "urin' the three coor"ination %eetin's #ith the 3(E, #ere e-pecte" to provi"e ener'& suppl& "urin' the Mala%pa&a shut"o#n, su""enl& shut"o#n the%selves to'ether #ith other ener'& suppliers. (ther plants, such as 2ta. Rita, Calaca 1, Masinloc 1 an" 2 an" *li+an also shut "o#n accor"in' to a 3(E report. $her%a Mobile "elivere" ener'& to Meralco but at a capacit& #a& belo# its nor%al capacit&. -iv. Ei'ht po#er 'eneration plants %a"e unsche"ule" shut"o#ns si%ultaneous)overlappin' in Nove%ber, na%el& 2ual 1, Calaca 1, Masinloc 1, GN Po#er 1 an" 2, Masinloc 1 an" 2 an" *li+an plants. 2D. $hese <series of unfortunate events> in a line of suppose" <coinci"ences> resulte" in one of the %ost, if not the %ost, e-pensive rate increase in Philippine histor& because, as respon"ent Meralco clai%s, it #as force" to bu& e-pensive po#er fro% the .holesale Electricit& 2pot Mar;et B.E2MC. 2 . Another factual consi"eration that Petitioners #ishes to raise before this /onorable Court is the increasin'l& habitual shut"o#n of the Mala%pa&a Pro+ect #hich naturall& increases the
rates of ener'& 'eneration even if these #ere pro"uce" b& *PPs at a si%ilarl& lo# cost. 2!. (n its part, officials of 1irst Gas Po#er Corp., #hich operates the 2ta. Rita an" 2an 4oren=o 'as-fe" facilities, also clai%e" "urin' the /ouse Ener'& Co%%ittee hearin' that it #as <force"> to use the %ore e-pensive fuel to ensure the continue" operation its plants an" help avert possible po#er outa'es in 4u=on. 2?. *n the sa%e /ouse Ener'& Co%%ittee hearin', it #as also that onl& three BDC po#er pro"ucers "ictate" the price of electricit& in the #holesale spot %ar;et fro% the perio" (ctober 2? to Nove%ber 2!, 201D Hthe 4i%a& Plant of Millenniu% /ol"in's *nc. o#ne" b& business%an Mi;e Galencia, the $her%a Mobile of the Aboiti= Group, an" the Bauan' 3iesel Po#er Plant, of the 1!@0 Ener'& Corp. 1ro% an avera'e of P1D.A per ;.h before the Mala%pa&a shut"o#n, their spot price s;&roc;ete" to an avera'e of PDD.22 ;.h "urin' the sai" perio" over. 2A. A ver& hi'h price ceilin' #as also reveale", at P?2);.h sol" at .E2M, #hile nor%all& the price is #a& belo# this on the avera'e in the spot %ar;et. 2F. $he in"epen"ent thin; tan; *bon 1oun"ation co%%ente" that the po#er in"ustr& is controlle" b& onl& a fe# pla&ers an" collusion is e-pecte". (nl& five co%panies control F0O of po#er capacit& in the countr&7 Co+uan'co)2MC B22OC, Aboiti= B20OC, 4ope= B1FOC, $& B12OC an" Consun+i BFOC. $hese sa%e fir%s o#n the plants #ith alle'e"l& coor"inate" force" outa'es inclu"in' *li+an BCo+uan'co)2MCC, 2an 4oren=o B4ope=C an" Calaca BConsun+iC8 the other t#o plants are GN Po#er BA&alaC an" Masinloc BAE2C. 2@. E-traor"inar& shut"o#ns an" outa'es have beco%e a vicious c&cle a%on' the %a+or pla&ers in the po#er in"ustr& 'eneration sector. $hat other %a+or po#er plants #ere li;e#ise out of co%%ission #hen the Mala%pa&a natural 'as facilit& #as shut "o#n on Nove%ber 11, 201D to 3ece%ber 10, 201D, is not no# ne#, as reveale" in the sa%e /ouse Ener'& Co%%ittee hearin's. D0. 1or e-a%ple, fro% (ctober 20 to 2?, 2011 #hen a si%ilar shut"o#n of the Mala%pa&a pipeline happene", it suppose"l& force" po#er-'eneration co%panies to s#itch into the use of %ore e-pensive liEui" fuel. D1. 3urin' that perio" Meralco clai%e" that it source" its electricit& reEuire%ents fro% three BDC in"epen"ent po#er pro"ucers B*PPsC7 Pue=on Po#er Philippines 4t".9s coal-fire" facilit&, the 1,000-%e'a#att 2ta. Rita an" the !00-M. 2an 4oren=o facilities. *t also source" fro% the #holesale electricit& spot %ar;et B.E2MC an"
10
fro% state-o#ne" National Po#er Corp. Both 2ta. Rita an" 2an 4oren=o plants are both o#ne" b& the 4ope=-le" 1irst Gas /ol"in's. D2. $hen a'ain, in 5une to 5ul& 2012, one unit of the 2ual coal-fire" po#er plant in Pan'asinan that #as then o#ne" b& $ea% Ener'& #as also shut"o#n. $he Mala%pa&a facilit& #as also shut"o#n, as #ell as the Calaca po#er plant an" another $ea% Ener'& o#ne" po#er plant in Pa'bilao. $he Mala&a ther%al po#er plant in Ri=al #as also out. $he outa'es also resulte" in hi'her po#er rates. DD. $hen last Nove%ber, the Mala%pa&a facilit& #as a'ain shut"o#n, %a;in' it no# an al%ost annual activit&, an", as al#a&s it is also acco%panie" b& unsche"ule" outa'es of other po#er plants, resultin' to short-ter% an artificial shorta'e of electricit&. A"%itte"l&, these s&nchroni=e" shut"o#ns, too, resulte" to Meralco9s bu&in' the e-pensive electricit& fro% .E2M. D . /o#ever, "espite these, "urin' the sa%e /ouse Ener'& Co%%ittee hearin's, the ERC clai%s that its approval on Meralco9s increase" rate is no lon'er nee"e" as these char'es are suppose"l& <auto%aticall& passe" on.> ERC also clai%e" that it has no choice but to <'ive clearance> as the sourcin' of ener'& reEuire%ents is Meralco9s "ecision.
ISSUE *. ./E$/ER (R N($ ERC C(MM*$$E3 GRAGE AB62E (1 3*2CRE$*(N AM(6N$*NG $( 4AC: (R ENCE22 (1 56R*23*C$*(N *N APPR(G*NG 2$AGGERE3 /6GE P(.ER RA$E *NCREA2E2 (N $/E BA2*2 (1 MERA4C(92 6NGER*1*E3 4E$$ER PR(P(2A4 AN3 ERC92 3*2REGAR3 (1 36E PR(CE22 REP6*REMEN$2 6N3ER $/E 4A.. ./E$/ER (R N($ $/E ERC9s APPR(GA4 (1 MERA4C(92 M(GE $( PA22 (N $( C(N26MER2 $/E *NCREA2E2 *N $/E GENERA$*(N C(2$ 1(R N(GEMBER 201D *2 A GRAGE AB62E (1 3*2CRE$*(N AM(6N$*NG $( 4AC: (R ENCE22 (1 56R*23*C$*(N BECA62E 2A*3 APPR(GA4 *2 G*(4A$*GE (1 $/E PR(G*2*(N2 (1 EP*RA E2PEC*A440 *$2 MAN3A$E $( PR($EC$ $/E P6B4*C 1R(M AN$*-C(MPE$*$*GE PRAC$*CE2 AN3 AB62E (1 MAR:E$ BE/AG*(R (1 *N362$R0 P4A0ER2.
**.
11
***.
./E$/ER (R N($ 2EC$*(N2 ? AN3 2@ (1 EP*RA ./*C/ 3EC4ARE2 $/A$ P(.ER GENERA$*(N AN3 26PP40 ARE N($ P6B4*C 6$*4*0 (PERA$*(N2, AN3 $/A$ $/E*R C/ARGE2 $( $/E P6B4*C ARE BE0(N3 $/E REG64A$*(N (1 $/E ERC ARE 6NC(N2$*$6$*(NA4.
DISCUSSION5ARGUMENTS ERC 0'))%,,#d +$a&# a6-*# '7 d%*0$#,%'n a)'-n,%n+ ,' (a08 '$ #90#** '7 :-$%*d%0,%'n %n a11$'&%n+ *,a++#$#d ;-+# 1'<#$ $a,# %n0$#a*#* 'n ,;# 6a*%* '7 M#$a(0'* -n&#$%7%#d (#,,#$ 1$'1'*a( and %n d%*$#+a$d%n+ d-# 1$'0#** $#=-%$#)#n, -nd#$ ,;# (a<. D!. (n D#0#)6#$ >, ?@AB Meralco in an unverifie" letter infor%e" ERC of its intention to pass on to the consu%ers the 'eneration cost it incurre" for the %onth of Nove%ber 201D "ue to the announce" shut"o#n of the 2PEN-Mala%pa&a as #ell as the sche"ule" %aintenance of Pa'bilao 2 an" 2ual 1. D?. $his %ove b& Meralco #as %et #ith #i"esprea" protest fro% consu%ers, as the rate increase propose" a%ount to an increase of PhP .1 );.h in electricit& char'es. DA. (n D#0#)6#$ C, ?@AB, a %ere one #or;in' "a& after Meralco file" the unverifie" letter, an" in an atte%pt to pree%pt the sche"ule" con'ressional investi'ation on the sub+ect rate increase the follo#in' "a&, the ERC approve" the sa%e. DF. ERC 'ravel& abuse" its "iscretion in provisionall& approvin' the proposal of Meralco #ithout affor"in' the affecte" custo%ers the ri'ht to be hear" on the %atter as is reEuire" un"er the la# an" +urispru"ence. D@. $he *%ple%entin' Rules an" Re'ulation of the EP*RA 4a# BRepublic Act No. @1D?C reEuires that -<An& application or petition for rate a"+ust%ent or for an& relief affectin' the consu%ers %ust be verifie", an" acco%panie" #ith
12
an ac;no#le"'%ent of receipt of a cop& thereof b& the 4G6 4e'islative Bo"& of the localit& #here the applicant or petitioner principall& operates to'ether #ith the certification of the notice of publication thereof in a ne#spaper of 'eneral circulation in the sa%e localit&. $he ERC %a& 'rant provisionall& or "en& the relief pra&e" for not later than sevent& five BA!C calen"ar "a&s fro% the filin' of the application or petition, base" on the sa%e an" the supportin' "ocu%ents attache" thereto an" such co%%ents or plea"in's the consu%ers or the 4G6 concerne" %a& have file" #ithin thirt& BD0C calen"ar "a&s fro% receipt of a cop& of the application or petition or fro% the publication thereof as the case %a& be. $hereafter, the ERC shall con"uct a for%al hearin' on the application or petition, 'ivin' proper notices to all parties concerne", #ith at least one public hearin' in the affecte" localit&, an" shall "eci"e the %atter on the %erits not later than t#elve B12C %onths fro% the issuance of the afore%entione" provisional or"er. ---> B2ec. BeC, Rule DC 0. $he provisional approval of Meralco9s proposal per its 4etter violates these reEuire%ents7 a. Meralco9s application is %erel& b& virtue of a letter, an" unverifie" at that8 b. $here is no ac;no#le"'e%ent receipt of the application b& the 4G6 4e'islative Bo"& of the localit& #here Meralco principall& operates8 c. $here is no certification of the notice of publication of the application in a ne#spaper of 'eneral circulation in the sa%e localit&8 ". $here is no for%al hearin' con"ucte" #here all the parties concerne" #ere 'iven proper notices. 1. *t is alrea"& #ell-settle" that 2ec. BeC, Rule D of the EP*RA *RR is applicable to all petitions)applications #hich #oul" result in the a"+ust%ent or chan'e in the total price Bretail rateC pai" b& the en"-users, #hether this chan'e or a"+ust%ent is occasione" b& the a"+ust%ent or chan'e in the char'es for 'eneration, trans%ission, "istribution, suppl&, etc.?
2. *n this case, Meralco9s rate increase "ue to 'eneration costs for Nove%ber 201D clearl& affects consu%ers as it #ill result in the increase of the costs of their electricit& consu%ption. D. As earl& as 200 , the 2upre%e CourtA alrea"& outline" the reEuire%ents un"er 2ec. BeC Rule D of the EP*RA *RR7 B1C $he applicant %ust file #ith the ERC a verifie" application)petition for rate a"+ust%ent. *t %ust in"icate that a cop& thereof #as receive" b& the le'islative bo"& of the 4G6 concerne". *t %ust also inclu"e a certification of the notice of publication thereof in a ne#spaper of 'eneral circulation in the sa%e localit&. B2C .ithin D0 "a&s fro% receipt of the application)petition or the publication thereof, an& consu%er affecte" b& the propose" rate a"+ust%ent or the 4G6 concerne" %a& file its co%%ent on the application)petition, as #ell as on the %otion for provisional rate a"+ust%ent. BDC *f such co%%ent is file", the ERC %ust consi"er it in its action on the %otion for provisional rate a"+ust%ent, to'ether #ith the "ocu%ents sub%itte" b& the applicant in support of its application)petition. *f no such co%%ent is file" #ithin the D0-"a& perio", then an" onl& then %a& the ERC resolve the provisional rate a"+ust%ent on the basis of the "ocu%ents sub%itte" b& the applicant. B C /o#ever, the ERC nee" not con"uct a hearin' on the %otion for provisional rate a"+ust%ent. *t is sufficient that it consi"er the #ritten co%%ent, if there is an&. B!C $he ERC %ust resolve the %otion for provisional rate a"+ust%ent #ithin A! "a&s fro% the filin' of the application)petition. B?C $hereafter, the ERC %ust con"uct a full-blo#n hearin' on the application)petition not later than D0 "a&s fro% the "ate of issuance of the provisional or"er. Effectivel&, this provision li%its the lifeti%e of the provisional or"er to onl& 12 %onths. . *n the sai" case, the 2upre%e Court invali"ate" the rate hi;e propose" to be bille" b& Meralco consistin' of 'eneration char'e fro% PD.1FF?);.h to PD.D21D);.h. !.
)
+ree-o' +ro' .e(t Coalition &. RC, GR No. 161113, June 1", 2004, a/ cite- in NAS C*R &. RC, /upra 14
ERC* a11$'&a( '7 M#$a(0'* )'&# ,' 1a** 'n ,' 0'n*-)#$* ,;# %n0$#a*#* %n ,;# +#n#$a,%'n 0'*, 7'$ N'&#)6#$ ?@AB %* a +$a&# a6-*# '7 d%*0$#,%'n 6#0a-*# *a%d a11$'&a( %* &%'(a,%&# '7 1$'&%*%'n* '7 EPIRA #*1#0%a((/ %,* )anda,# ,' 1$',#0, ,;# 1-6(%0 7$') an,%-0')1#,%,%&# 1$a0,%0#* and a6-*# '7 )a$8#, 6#;a&%'$ '7 %nd-*,$/ 1(a/#$* ?. $he ERC is reEuire" un"er 2ection D of RA @1D? or the EP*RA la# to <pro%ote co%petition --- penali=e abuse of %ar;et po#er in the restructure" electricit& in"ustr&>. A. $he ERC, consi"erin' the suspiciousl& su""en an" si%ultaneous shut"o#n of various po#er plants to coinci"e #ith the announce" Mala%pa&a <turnaroun">, shoul" not have hastil& approve" the Meralco propose" rate increase barel& three "a&s fro% its sub%ission. $his hast& "ecision violates various provisions in the EP*RA la# inclu"in'7 a. 2ection D B"C #hich reEuires the ERC to <enforce rules an" re'ulations 'overnin' the operations of the electricit& spot %ar;et, an" the activities of the spot %ar;et operator an" other participants in the spot %ar;et, for the purpose of ensurin' 'reater suppl& an" rational pricin' of electricit&>8 b. 2ection 2 BfC #hich "eclares the polic& intent of RA @1D? to <protect public interest as it is affecte" b& the rates an" services of electric utilities an" other provi"ers of electric po#er. F. ERC not onl& has the %an"ate but also the po#er to investi'ate these hi'hl& irre'ular shut"o#ns #hich le" to the rate increase propose", notabl&, 2ection D BpC #hich 'rants the ERC the po#er to inspect pre%ises, recor"s an" accounts <in the e-ercise of its Euasi +u"icial function for purposes of "eter%inin' the e-istence of anti-co%petitive behavior or %ar;et po#er abuse --->. @. $he ERC, ho#ever, blatantl& rene'e" on its "ut& to protect public fro% anti-co%petitive practices an" %ar;et abuse #hen it approve" the P .1! increase "espite clear in"ications of irre'ularit& in the si%ultaneous planne" an" unplanne" shut"o#ns, the heft&
1"
spi;e of electricit& prices in .E2M an" the unprece"ente" increase that Meralco is as;in' for. !0. $he 3(E9s "ecision to investi'ate the suspecte" collusion of electricit& in"ustr& pla&ers an" price %anipulation shoul" have co%pelle" the ERC to stop the i%ple%entation of Meralco9s "ecision of P .1!);#h po#er rate hi;e an" "isapprove Meralco9s reEuest for sta''ere" increase. !1. *t is reall& %in" bo''lin' that the ERC hastil& approve" Meralco9s letter reEuest for sta''ere" increase an" at the sa%e ti%e or"er the investi'ation of the suspecte" collusion or violation of la# of electricit& 'enerators an" "istributor8 thus, %a;in' us believe that the ERC is also in collusion #ith veste" oil interests in their profiteerin' activities. !2. *f Meralco9s po#er rate hi;e is not reverse" an" the ERC9s betra&al of "ut& 'oes unchec;e" an" unpunishe", then, this vicious c&cle #ill be repeate" #here electricit& 'eneratin' co%panies #ill stop enterin' into contract #ith Meralco for a reasonable price or "eliberatel& shut"o#n, full& or partl& its operations, to sell to .E2M for a %uch hi'her price an" the ERC #ill +ust sit i"l& or #orse, not its hea" in approval. !D. B& approvin' the rate increase post haste an" #ithout e-ercisin' its reEuire" re'ulator& role the ERC has clearl& co%%itte" 'rave abuse of "iscretion. S#0,%'n* D and ?C '7 ,;# EPIRA d#0(a$%n+ ,;a, 1'<#$ +#n#$a,%'n and *-11(/ a$# n', 1-6(%0 -,%(%,/ '1#$a,%'n*E and ,;a, ,;#%$ 0;a$+#* ,' ,;# 1-6(%0 a$# 6#/'nd ERC $#+-(a,%'n, a$# -n0'n*,%,-,%'na( ! . 2ection ? an" 2@ of the EP*RA shoul" be stric;en out as unconstitutional. !!. Con'ress in passin' the sai" provisions ha" 'rievousl& erre" in consi"erin' po#er 'eneration an" suppl& as not a public utilit& operation, thus not sub+ect to franchise reEuire%ent an" re'ulation. !?. *n truth an" in fact an" base" on +urispru"ence, po#er 'eneration co%panies, inclu"in' but not li%ite" to po#er 'eneration co%panies contracte" b& Meralco an" other local po#er "istribution
16
co%panies to suppl& po#er in their %ar;ets an" those sellin' in .E2M, are public utilities an" %ust be consi"ere" as such, thus sub+ect to franchise reEuire%ent an" suppl&)price re'ulation. !A. $he ERC, havin' been %an"ate" b& la# an" possessin' the e-pertise to ensure consu%er protection an" prevent %ar;et abuse shoul" have been alrea"& alerte" b& the happenin' of the aforesai" unusual events an" pro%ptl& acte" to stop Meralco9s unprece"ente" po#er rate hi;e. !F. *nstea", an" contrar& to its %an"ate, the ERC turne" a blin" e&e to the facts an" favore" the rate hi;e to the "etri%ent of the consu%ers, assertin' provisions un"er EP*RA, specificall&, 2ection ? an" 2ection 2@ #hich provi"e that the prices to be char'e" b& a 'eneration co%pan& for the suppl& of electricit&, an" the prices to be char'e" b& suppliers for the suppl& of electricit& to the contestable %ar;et, are not sub+ect to re'ulation b& the ERC. $he provisions state7 2EC. ?. Generation 2ector. L G#n#$a,%'n '7 #(#0,$%0 1'<#$, a 6-*%n#** a77#0,#d <%,; 1-6(%0 %n,#$#*,, *;a(( 6# 0')1#,%,%&# and '1#n. --An& la# to the contrar& not#ithstan"in', po#er 'eneration shall not be consi"ere" a public utilit& operation. 1or this purpose, an& person or entit& en'a'e" or #hich shall en'a'e in po#er 'eneration an" suppl& of electricit& shall not be reEuire" to secure a national franchise. 6pon i%ple%entation of retail co%petition an" open access, ,;# 1$%0#* 0;a$+#d 6/ a +#n#$a,%'n 0')1an/ 7'$ ,;# *-11(/ '7 #(#0,$%0%,/ *;a(( n', 6# *-6:#0, ,' $#+-(a,%'n 6/ ,;# ERC #90#1, a* ',;#$<%*# 1$'&%d#d %n ,;%* A0,. N-- BE%phasis supplie"C 2EC. 2@. 2uppl& 2ector. L T;# *-11(/ *#0,'$ %* a 6-*%n#** a77#0,#d <%,; 1-6(%0 %n,#$#*,. E-cept for "istribution utilities an" electric cooperatives #ith respect to their e-istin' franchise areas, all suppliers of electricit& to the contestable %ar;et shall reEuire a license fro% the ERC. --T;# 1$%0#* ,' 6# 0;a$+#d 6/ *-11(%#$* 7'$ ,;# *-11(/ '7 #(#0,$%0%,/ ,' ,;# 0'n,#*,a6(# )a$8#, *;a(( n', 6# *-6:#0, ,' $#+-(a,%'n 6/ ,;# ERC. N-- BE%phasis supplie"C
1)
!@. $he pla&ers in the po#er sector L specificall& the 'eneration an" suppl& sectors L have escape" accountabilit& b& virtue of the EP*RA #hich "ictates that these sectors are be&on" the re'ulatin' po#er of the ERC. 3ue to this provision, the 'eneration an" suppl& sector, especiall& since the& are not consi"ere" public utilities un"er 2ection ? an" 2@ of the EP*RA, are e%bol"ene" in %anipulatin' the %ar;et an" collu"in' #ith one another in or"er to +ac; up electricit& rates. $he ERC on the basis of this provision is also e%bol"ene" in approvin' rate increases inclu"in' hi'hl& irre'ular an" un+ust rate increases. ?0. $hus, Petitioners are challen'in' the constitutionalit& of 2ections ? an" 2@ of the EP*RA #hich "eclare that BiC po#er 'eneration an" suppl& are not consi"ere" public utilit& operations an" po#er 'eneration an" suppl& co%panies are not consi"ere" public utilities8 an" that BiiC the prices char'e" b& the 'eneration co%pan& for the suppl& of electricit&, an" the prices char'e" b& suppliers for the suppl& of electricit& to the %ar;et, shall not be sub+ect to re'ulation b& the ERC. I, %* *#,,(#d ,;a, <;#,;#$ '$ n', 'n# %* a 1-6(%0 -,%(%,/ %* a )a,,#$ '7 :-d%0%a(, n', (#+%*(a,%&# d#,#$)%na,%'n. $he EP*RA "eclaration L that po#er 'eneration #hile i%presse" #ith public interest, is not a public utilit& operation an" therefore the prices it char'es to the public are not sub+ect to re'ulation b& the ERC L is not controllin' to the courts. $hus in North Ne'ros 2u'ar Co. v. /i"al'o F it #as state"7
61.
W;#,;#$ '$ n', a +%&#n 6-*%n#**, %nd-*,$/, '$ *#$&%0# %* a 1-6(%0 -,%(%,/ d'#* n', d#1#nd -1'n (#+%*(a,%&# d#7%n%,%'n, 6-, -1'n ,;# na,-$# '7 ,;# 6-*%n#** '$ *#$&%0# $#nd#$#d, an" an atte%pt to "eclare a co%pan& or enterprise to be a public utilit&, #here it is inherentl& not such, is, b& virtue of the 'uaranties of the fe"eral constitution, voi" #henever it interferes #ith private ri'hts of propert& or contract. 2o a le'islature cannot b& %ere fiat or re'ulator& or"er convert a private business or enterprise into a public utilit&, an" ,;# =-#*,%'n <;#,;#$ '$ n', a 1a$,%0-(a$ 0')1an/ '$ *#$&%0# %* a 1-6(%0 -,%(%,/ %* a :-d%0%a( 'n#, an" %ust be "eter%ine" as such b& a court of co%petent +uris"iction. BE%phasis retaine". 1ootnotes an" citations re%ove"C
63 !hil. 664 019361, cite- in the .i//entin2 *pinion of Ju/tice 3in2a in the ca/e of JG Su''it 4ol-in2/ Inc. &. CA, GR No. 124293, Septe'(er 24, 2003.
%
1%
*n this case, the ver& nature of the po#er 'eneration sector put in #ithin the fra%e#or; of a public utilit&. *n the case of 5G 2u%%it /ol"in's *nc.@, the 2upre%e Court e-plaine" the nature of a public utilit&, thus7 A <1-6(%0 -,%(%,/> is <a business or service en'a'e" in re'ularl& suppl&in' the public #ith so%e co%%o"it& or service of public conseEuence such as electricit&, 'as, #ater, transportation, telephone or tele'raph service.> $o constitute a public utilit&, the facilit& %ust be necessar& for the %aintenance of life an" occupation of the resi"ents. /o#ever, the fact that a business offers services or 'oo"s that pro%ote public 'oo" an" serve the interest of the public "oes not auto%aticall& %a;e it a public utilit&. Public use is not s&non&%ous #ith public interest. As its na%e in"icates, the ter% <public utilit&> i%plies 1-6(%0 -*# an" *#$&%0# ,' ,;# 1-6(%0. $he principal d#,#$)%na,%&# 0;a$a0,#$%*,%0 of a public utilit& is that of service to, or rea"iness to serve, an in"efinite public or portion of the public as such #hich has a le'al ri'ht to "e%an" an" receive its services or co%%o"ities. 2tate" other#ise, the o#ner or person in control of a public utilit& %ust have "evote" it to such use that the public 'enerall& or that part of the public #hich has been serve" an" has accepte" the service, has the ri'ht to "e%an" that use or service so lon' as it is continue", #ith reasonable efficienc& an" un"er proper char'es. 6nli;e a private enterprise #hich in"epen"entl& "eter%ines #ho% it #ill serve, a <public utilit& hol"s out 'enerall& an" %a& not refuse le'iti%ate "e%an" for service.> $hus, in I('%(' I0# and C'(d S,'$a+# C'. &*. P-6(%0 U,%(%,/ B'a$d, this Court "efine" <public use,> #i&7 <Public use> %eans the sa%e as <use b& the public.> $he essential feature of the public use is that it is not confine" to privile'e" in"ivi"uals, but is open to the in"efinite public. *t is this in"efinite or unrestricte" Eualit& that 'ives it its public character. *n "eter%inin' #hether a use is public, #e %ust loo; not onl& to the character of the business to be "one, but also to the propose" %o"e of "oin' it. *f the use is %erel& optional #ith the o#ners, or the public benefit is %erel& inci"ental, it is not a public use, authori=in' the e-ercise of +uris"iction of the public utilit& co%%ission. $here %ust be, in 'eneral, a ri'ht #hich the la# co%pels the o#ner to 'ive to the 'eneral public. *t is not enou'h that the 'eneral prosperit& of the public is pro%ote". Public use is not s&non&%ous #ith public interest. T;# ,$-# 0$%,#$%'n 6/ <;%0; ,' :-d+# ,;# 0;a$a0,#$ '7 ,;# -*# %* <;#,;#$ ,;# 1-6(%0 )a/ #n:'/ %, 6/ $%+;, '$ 'n(/ 6/ 1#$)%**%'n.
JG Su''it 4ol-in2/ Inc. &. CA, GR No. 124293, Septe'(er 24, 2003 19
?2. Appl&in' the criterion above, it is plain that po#er 'eneration co%panies, are public utilities. Po#er 'eneration co%panies, inclu"in' but not li%ite" to po#er 'eneration co%panies contracte" b& Meralco an" other local po#er "istribution co%panies to suppl& po#er an" those sellin' in .E2M are public utilities. ?D. Moreover, these conteste" EP*RA provisions clearl& run afoul of the 1@FA Constitution, pri%aril& Article N**, on the National Econo%& an" Patri%on&. ? . S#0,%'n D '7 A$,%0(# 2II '7 ,;# ACFG C'n*,%,-,%'n , for e-a%ple, clearl& states that7 <$he use of propert& bears a social function, an" all econo%ic a'ents shall contribute to the co%%on 'oo". *n"ivi"uals an" private 'roups, inclu"in' corporations - - shall have the ri'ht to o#n, establish an" operate econo%ic enterprises, sub+ect to the "ut& of the 2tate to pro%ote "istributive +ustice an" to intervene #hen the co%%on 'oo" so "e%an"s.> ?!. EP*RA9s %an"ate, as containe" in 2ections ? an" 2@, for the state to aban"on its po#er to re'ulate the e-cessive i%positions of po#er 'enerators an" suppliers, is clearl& unconstitutional as the sa%e #ill not be for the co%%on 'oo" of the 1ilipinos, the consu%ers particularl&. ??. Generation an" suppl& of po#er, bein' i%bue" #ith public interest, cannot be treate" li;e shares of stoc;s that stoc; %ar;et pla&ers can %anipulate an&ti%e the& #ant. ?A. 3espite the so-calle" <unbun"lin'> of the po#er in"ustr&, it is sub%itte" that this "i" not erase or obliterate the <public utilit&> character of both the 'eneration an" suppl& co%ponents. ?F. 1or true enou'h, the po#er 'eneration an" suppl& facilities are necessaril& still are for <the %aintenance of life an" occupation of the resi"ents.> $he activities bein' con"ucte" b& these co%panies serve or affect a #i"e 'eneral public, an un"eniable characteristic of a public utilit&. ?@. 2ince the services offere" b& the po#er 'eneration an" suppl& co%panies affect a #i"e 'eneral public, all the %ore that the& shoul" be un"er the a%bit of strict re'ulation b& the state, i.e. even reEuirin' the% to secure franchises for its operations. A0. $his fact of not bein' un"er state re'ulation is clearl& bein' use" as a safe cover b& these co%panies in their unbri"le" i%position of increase" char'es an" other anti-consu%er activities li;e the si%ultaneous unsche"ule" outa'es, a%on' others.
20
A1. *n"ee", these provisions on non-re'ulation #ei'he" heavil& on such other EP*RA provisions that %an"ate" ERC, for e-a%ple, to #atch out for <abuse of %ar;et po#er, carteli=ation, an" other anti-co%petitive or "iscri%inator& behaviour> b& the pla&ers in the po#er in"ustr&, or, its %an"ate to ensure <a 'reater suppl& an" rational pricin' of electricit&.> A2. Moreover, these provisions are contrar& to S#0,%'n A A$,%0(# III '7 ,;# ACFG C'n*,%,-,%'n #hich prohibits the ta;in' of propert& #ithout "ue process, since prohibitin' the re'ulation of prices char'e" b& 'eneration co%panies an" suppliers has resulte" in "eprivin' the consu%ers of their har" earne" inco%e in or"er to pa& inor"inatel& hi'h electricit& rates. AD. 2ections ? an" 2@ of the EP*RA, it is ar'ue", even violate S#0,%'n C A$,%0(# II '7 ,;# ACFG C'n*,%,-,%'n #hich reEuires the 2tate to <free the people fro% povert& throu'h policies that provi"e a"eEuate social services --- an" an i%prove" Eualit& of life for all>. 2ections ? an" 2@ of the EP*RA con"e%n the people to povert& instea" of freein' the% fro% this scour'e an" results in a "is%al Eualit& of life "ue to the prohibitive cost of electricit&. A . *t is hi'h ti%e for this /onorable Court to revisit the EP*RA an" finall& save the consu%ers fro% the unreasonable an" un+ust bur"en that this la# has cost the 1ilipino people.
GROUNDS "OR ISSUANCE O" A TEMPORARY RESTRAINING ORDER AND5OR PRELIMINARY INJUNCTION A!. Petitioners pra& for the issuance of a #rit of preli%inar& in+unction en+oinin' respon"ents fro% i%ple%entin' the sa%e pen"in' action b& the /onorable Court. A?. $he alle'ations in this Petition #ill un"oubte"l& "e%onstrate Petitioners9 clear an" un%ista;able ri'hts to affor"able, transparent, an" reasonable prices of electricit&, 10 as #ell as the constitutional ri'ht to "ue process 11 an" ri'ht a'ainst %onopolies "a%a'in' to the public interest.12 AA. As the approval of the sta''ere" rate hi;e is alrea"& in full force an" effect, Petitioners an" the entire captive %ar;et of Meralco are alrea"& sufferin' 'rave an" irreparable in+ur& an", unless the
10 11 12
Section 2, Chapter I of !IRA Section 1, Article III of the 19%) Con/titution Section 19, Article 5II of the 19%) Con/titution 21
i%ple%entation of the rate hi;e is en+oine", #ill continue to suffer 'rave an" irreparable in+ur&. AF. $he po#er rate increases co%e at a #orse ti%e #hen the countr& is still reelin' fro% the #orse ever "isaster brou'ht b& super t&phoon 0olan"a an" the countr& is un"er national cala%it&. A@. Most of the en"-users #ho #ill be sufferin' fro% %ore e-pensive electric bills fro% 3ece%ber to March are those #ho in so%e #a& have been li;e#ise affecte" b& the "isasters #hich recentl& hit the countr&. $he& are survivors of these "isasters, or have relatives #ho are survivors, or have relatives #ho lost their lives. $he aftereffects of these "isasters have un"oubte"l& "raine" or at least si'nificantl& #ea;ene" their finances. Bein' i%pose" #ith a recor"-hi'h increase in electricit& rate #ill be un+ust, especiall& as the sa%e su""enl& sprun' on the% #ithout the %erest hint of a #arnin'.
A "INAL WORD Even before the filin' of the instant Petition, not a fe# have alrea"& e-presse" stron' reservations on the full "ere'ulation of a basic public utilit& li;e the po#er in"ustr& as "ictate" b& EP*RA, as it is bein' stu""e" #ith provisions that are "etri%ental to the interest of the 1ilipino people. *t is hi'h ti%e for this /onorable Court to revisit the EP*RA an" finall& save the consu%ers fro% the unreasonable an" un+ust bur"en that this la# has cost the 1ilipino people. .hen the EP*RA beca%e la# in 2001, #hile ensurin' that the Philippines achieve total electrification, its %ain polic& 1D is to protect
S C3I*N 2. .eclaration of !olic,. 6 It i/ here(, -eclare- the polic, of the State7 (a) To ensure and accelerate the total electrification of the country; (b) To ensure the quality, reliability, security and affordability of the supply of electric power; (c) To ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market; 0-1 3o enhance the inflo8 of pri&ate capital an- (roa-en the o8ner/hip (a/e of the po8er 2eneration, tran/'i//ion an- -i/tri(ution /ector/9 0e1 3o en/ure fair an- non$-i/cri'inator, treat'ent of pu(lic anpri&ate /ector entitie/ in the proce// of re/tructurin2 the electric po8er in-u/tr,9
13
22
the consu%ers an" public interest in BiC ensurin' the Eualit&, reliabilit&, securit& an" affor"abilit& of the suppl& of electric po#er8 an" BiiC ensurin' the transparent an" reasonable prices of electricit&. None of these are present to"a&. (ur po#er suppl& is unreliable as %an& parts of the countr& constantl& e-perience blac; outs. (ur electricit& rate is the hi'hest in Asia. A fe# corporations have %ana'e" to %onopoli=e the in"ustr&.
1. $hat this Petition be 'iven "ue course8 2. $hat a $e%porar& Restrainin' (r"er an")or Preli%inar& *n+unction be issue" to restrain the Respon"ents fro% i%ple%entin' the rate hi;e "urin' the pen"enc& of this Petition8 D. $hat an oral ar'u%ent be hel" so that issues coul" be %ore e-haustivel& threshe" out8 . $hat after notice an" hearin', a final or"er be issue" "eclarin' as N644 AN3 G(*3 the provisional 'rant b& public respon"ent ERC of the rate increase for lac; of "ue process8 !. $hat after notice an" hearin', "eclare as 6NC(N2$*$6$*(NA4 2ection ? an" 2@ of the EP*RA 4a#. (ther reliefs +ust an" eEuitable un"er the pre%ises are li;e#ise pra&e" for. Respectfull& sub%itte". Pue=on Cit& for Manila. 3ece%ber 1@, 201D.
(f) To protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power; 021 3o a//ure /ociall, an- en&iron'entall, co'pati(le ener2, /ource/ an- infra/tructure9 0h1 3o pro'ote the utili:ation of in-i2enou/ an- ne8 an- rene8a(le ener2, re/ource/ in po8er 2eneration in or-er to re-uce -epen-ence on i'porte- ener2,9 0i1 3o pro&i-e for an or-erl, an- tran/parent pri&ati:ation of the a//et/ an- lia(ilitie/ of the National !o8er Corporation 0N!C19 0;1 3o e/ta(li/h a /tron2 an- purel, in-epen-ent re2ulator, (o-, an/,/te' to en/ure con/u'er protection an- enhance the co'petiti&e operation of the electricit, 'ar<et9 an0<1 3o encoura2e the efficient u/e of ener2, an- other 'o-alitie/ of -e'an- /i-e 'ana2e'ent.
23
MARIA CRISTINA P. YAMBOT No. ! :-Ath 2t., Br'&. .est :a%ias, Pue=on Cit& $el. No.7@21D AD E%ail7 cris.&a%botQ'%ail.co% P$R No. @?11 D2)01-0A-1D)Ri=al *BP No. @22? )01-0F-1D)Ri=al Roll No. !@A00 MC4E Co%pliance No. *G L 001??1?)0 -11-1D COPY "URNISHEDH ENERGY REGULATORY COMMISSION Pacific Center Buil"in', 2an Mi'uel Ave. (rti'as Center Pasi' Cit& MANILA ELECTRIC COMPANY (rti'as Pasi' Cit& O""ICE O" THE SOLICITOR GENERAL (2G Buil"in', 1D A%orsolo 2t. 4e'aspi Gilla'e, Ma;ati Cit& 122@
E2PLANATION O" SERVICE O" PETITION THROUGH REGISTERED MAIL $he service of copies of the instant Petition is %a"e throu'h re'istere" %ail, as personal service thereof cannot be %a"e "ue to "istance an" lac; of available personnel. $his e-planation is %a"e pursuant to Rule 1D, 2ection 11 of the Rules of Court. MARIA CRISTINA YAMBOT
24