Republic of the Philippines

ENERGY REGULATORY COMMISSION

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ERC issues Cease and Desist Orders to Retail Electricity Suppliers, Distribution Utilities, and Market Operator

08 December 2022 /ERC-Planning and Public Information Service  


PASIG CITY – The Energy Regulatory Commission (ERC) ordered several Retail Electricity Suppliers (RES) to cease and desist from issuing Notices of Disconnections, and Distribution Utilities (DUs) and the Independent Electricity Market Operator of the Philippines (IEMOP) from disconnecting the electricity supply of their contestable customers.

Thirteen (13) Cease and Desist Orders (CDO) were issued by ERC following the hearings conducted on several petitions for dispute resolution filed by contestable consumers. The cases were filed by consumers due to differing interpretations by the parties on the propriety of the imposition by RES of Fuel Cost Recovery Adjustments (FCRA) or Incremental Fuel Cost Increase (IFCI). According to the contestable customers, their contracts prescribed fixed rates but the adjustments are now being claimed unilaterally by their suppliers in violation of their supply contracts. RES Respondents meanwhile raised jurisdictional issues against ERC. DUs and the IEMOP, on the other hand, were impleaded since the issuance of notices and the disconnections of service are performed by such parties.

ERC directed the parties to maintain the status quo while the Motions to Dismiss filed by the RES are being evaluated by the Commission. During this period, the parties are required to observe the terms and conditions of their supply agreements.

Consumers are assured of continuous electricity supply pending the final resolution by the ERC by the issuance of the CDOs as part of the latter’s mandate to protect consumer interests.

Under the Republic Act No. 9136, or the “Electric Power Industry Reform Act of 2001", ERC is authorized to issue cease and desist orders after due notice and hearing. Existing jurisprudence also states that ERC, may issue provisional reliefs, such as injunctive reliefs on motion of the party in the case, or on its own initiative.

 


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