Suspended ERC commissioners again run to CA

MANILA, Philippines — The four Energy Regulatory Commission (ERC) officials ordered suspended anew by the Office of the Ombudsman have once again sought relief from the Court of Appeals (CA).

In a 41-page petition filed last June 13, ERC commissioners Alfredo Non, Gloria Victoria Yap-Taruc, Josefina Patricia Asirit and Geronimo Sta. Ana asked the appellate court to reverse and set aside the second suspension order recently issued by the ombudsman against them.

They also sought issuance of a temporary restraining order (TRO) stopping the implementation of the order suspending them from office for three months without pay upon complaint filed by consumer group National Association of Electricity Consumers for Reforms Inc. (Nasecore).

The same commissioners secured a TRO from the CA earlier this year that enjoined the earlier one-year suspension order issued by the ombudsman against them for favoring several power firms from a competitive selection process (CSP) meant to determine the best price for consumers.

Just like in the previous case, the four ERC officials accused the anti-graft office of grave abuse of discretion when it penalized them for an action that the same office said is not illegal.

The ombudsman found the commissioners guilty of simple neglect of duty for tolerating the misuse of Bill Deposits (BDs) by allowing its commingling with the capital or operation cost of Manila Electric Co. (Meralco) contrary to the purpose for which the BD was established – as guarantee for the payment of bills.

But in their petition, the ERC executives alleged that the ombudsman’s findings were simply absurd.

“The finding of the ombudsman against the petitioners that they tolerated the misuse of Bill Deposit is inconsistent with its finding that receipt of bill deposit creates a creditor-debtor relationship, thus, its commingling with the capital of the distribution utility is legal,” read the petition.

“If the ombudsman is of the view that a loan was created between Meralco and its consumers on the bill deposit, how can it then conclude that petitioners ‘tolerated’  its ‘misuse’ when her characterization thereof betrays any act of misuse? Indeed, as the debtor of the money used for bill deposit, Meralco is allowed to use it or commingle it with its other funds because when ownership over a thing is transferred, the owner has all the rights to enjoy or dispose it,” it stressed.

The ombudsman has also faulted petitioners after they continuously refrained from strictly implementing rules defining the nature of BDs as “mere guarantee in payment of bills,” which must be returned upon termination of the distribution utility’s service.  

In issuing the assailed suspension order, the ombudsman was acting on the complaint for syndicated estafa and grave misconduct against the ERC commissioners as well as Meralco executives over the alleged unauthorized use and utilization of consumers’ BDs by the distribution utilities, the discriminatory fixing of interests by the ERC and the non-crediting by Meralco of the interests earned by the BDs deposits in favor of the consumers. 

Although the criminal charge was dismissed for insufficiency of evidence, the ombudsman referred to the Commission on Audit the conduct of an audit on the BDs collected by Meralco from public consumers. 

The original case stemmed from allegations that the ERC officials gave due preference to Meralco and its power supply agreements with affiliated power generation companies by extending the deadline for compliance of the CSP. 

The suspension of four commissioners will stall development in the energy sector, which should pave way for immediate reforms in the country’s power industry watchdog, officials said yesterday.

“ERC needs the commissioners to function. We can’t afford to delay the power projects. Future consequences will be a big blow to our consumers and economy,” Energy Secretary Alfonso Cusi said.

The ERC is waiting for the Office of the President to implement the ombudsman’s order before taking any action.

Since this is the second time the ERC commissioners were ordered suspended, Sen. Sherwin Gatchalian said it is high time that the commission be reformed to restore its institutional integrity.

“It’s really about time to reform the ERC governance structure,” he said.

The lawmaker is sponsoring the passage of the ERC Governance Act which seeks to de-concentrate power within the ERC and by compelling the body to be more open and transparent in its decision-making processes. – With Paolo Romero, Danessa Rivera