Republic of the Philippines


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ERC dismisses defective PSA filings

The Energy Regulatory Commission (ERC) dismissed eleven (11) applications for the approval of Power Supply Agreements (PSA) found to be legally defective.   

The ERC’s ruling was contained in separate Orders issued to the following concerned applicants:  (1)  BILECO & GNPD; (2) LUELCO & GNPD; (3) COTELCO & WMPC; (4) CASURECO IV & ULGEI; (5) CEBECO I & MPGC; (6) DANECO & SMCPC; (7) SIARELCO & SMCPC; (8) CEBECO II & MPGC; (9) MORESCO I & SMCPC; (10) ZAMSURECO I & SMCPC; and (11) NUVELCO & SMEC.  

The 11 applications failed to meet the Commission's requirements as regards Verification and Certification of Non-Forum Shopping. Consequently, the applications were deemed legally defective.

Pursuant to the Commission’s 2006 Rules of Practice and Procedure, Applications for approval of contracts must be accompanied by a Verification stating that the affiant has read the pleading and that the allegations therein are true and correct of his personal knowledge or based on authentic records. Likewise, the same rules require that Applications contain a sworn Certification of Non-Forum Shopping which would contain among others a statement the applicant has not commenced any action or filed any claim involving the same issues in any other court, tribunal or quasi-judicial agency.

The 11 Applications have failed to validly comply with these twin requirements of Verification and Certification of Non-Forum Shopping. The Supreme Court has ruled in several cases that, absent any compelling reasons, non-compliance with these basic legal requirements can lead to the dismissal of Applications.

It must be recalled that the Commission extended the deadline for filing of Applications for approval of power supply agreements that did not undergo competitive selection process. Notwithstanding the additional period provided for distribution utilities and generation companies to prepare their Applications, the aforementioned Applicants still filed legally defective Applications.

In the absence of any compelling reasons to rule otherwise, the Commission deemed the legal defects as sufficient ground to dismiss the said Applications.

To prevent a repeat of the foregoing incident dismissal, the Commission has implemented a rigorous pre-filing process in order to ensure that Applications filed before the Commission are in compliance with its requirements and resolutions. Likewise, the Commission would like to remind Applicants to comply with its pre-filing and filing rules. After all, the rules and procedures are in place to benefit all stakeholders appearing before the Commission and ensure equitable play in the field of energy regulation.

“The ERC, being a quasi-judicial agency, is duty-bound to ensure that applicants and petitioners doing business in its regulated field act with truthfulness and diligence in the filing of their pleadings”, ERC Chairman and CEO Jose Vicente B. Salazar asserted.


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