No intention to defy the Supreme Court – ERC

The resumption of public hearings on Meralco’s rate hike application filed with the Energy Regulatory Commission (ERC) does not in any way defy the status quo Order of the Supreme Court.

ERC issued this clarification in reaction to a news item entitled “ERC to defy High Tribunal” that came out in a major daily on March 25, 2004.

The Order of the High Court is for a status quo, stopping Meralco in implementing the 12-centavo rate increase granted by ERC in its provisional authority dated November 27, 2003, and not the hearings for the rate case.

“Under the Rules of Court on special civil actions, such as the one filed with the Supreme Court, the ERC is required to proceed with the hearings of the principal case, or in other words, the Meralco rate application, unless restrained or enjoined from doing so. This is especially true considering that the petition filed with the High Tribunal raises issues that are separate and distinct from the issues to be resolved in the main rate application pending before the Commission,” ERC Chairman Rodolfo R. Albano pointed out.

The petition filed with the High Tribunal stemmed from the provisional authority (PA) granted by the ERC to Meralco to increase its tariff by an average of 12 centavos per kilowatt-hour, pending completion of the public hearings and final resolution of the case.

“Prudence dictates that utmost courtesy must be given to the High Tribunal. We will never cross the line to defy its Orders. In proceeding with the hearings on the Meralco application, however, ERC is merely performing and discharging its functions as mandated under the EPIRA,” Chairman Albano stressed.

March 26, 2004