Ombudsman orders ERC chair’s 6-month suspension

MANILA, Philippines — The Office of the Ombudsman has ordered the preventive suspension of Energy Regulatory Commission (ERC) Chairperson Monalisa Dimalanta amid its ongoing investigation of the administrative charges filed against her by consumer group National Association of Electricity Consumers for Reforms Inc. (NASECORE).

In a six-page order approved by Ombudsman Samuel Martires on Aug. 27, the ombudsman placed Dimalanta under preventive suspension “without pay” until the administrative investigation is terminated.

The ombudsman, however, said the suspension shall not exceed six months, unless there is a delay in the disposition of the case caused by Dimalanta herself.

The ombudsman said there is a need to place Dimalanta under preventive suspension as the initial evidence on record showed that her guilt is strong. Thus, the ombudsman said, she must be prevented from possibly committing further acts of malfeasance that might prejudice the ongoing investigation.

The administrative investigation stemmed from a complaint filed by NASECORE in November 2023 over Dimalanta’s alleged act of permitting the Manila Electric Co. (Meralco) to regularly purchase electricity from Wholesale Electricity Spot Market at higher prices.

The NASECORE said Meralco, in turn, passed on the charges to consumers without the required prior approval of the ERC, in violation of the Electric Power Industry Reform Act.

Executive Secretary Lucas Bersamin was directed to implement the suspension order.

In its complaint, the NASECORE, represented by its president Petronil Ilagan, said that Meralco’s application for performance-based adjustment of its power distribution rate remained pending with the ERC, thus passing the charges to consumers is unlawful.

The ombudsman, in its suspension order, did not discuss the merits of NASECORE’s complaint but said that there is strong evidence that the “respondent’s actuations amount to Grave Misconduct, Grave Abuse of Authority, Gross Neglect of Duty and Conduct Prejudicial to the Best Interest of the Service.”

Meanwhile, Rep. Felimon Espares of party-list Coop-Natco, who sits as chairman of the House committee on ethics, is calling on the Department of Energy as well as the ERC to ensure that upcoming power plants are conveniently accessible to the main transmission grid for easier connectivity.

Espares made this proposal after DOE officials admitted they don’t have the mandate or control over power generation companies’ decisions on the location of their plants.

“DOE approves the project, but it is an unregulated industry. It is the owner who decides. They will make the notification but they can also go through system impact studies with NGCP (National Grid Corp. of the Philippines),” Energy Undersecretary Sharon Garin conceded.

Espares, during the hearing of the House committee on legislative franchises, said the DOE and ERC should work together to find a solution to this problem, as making generators in sync with the transmission grid will definitely help stabilize energy supply in some areas that need it. –  Brix Lelis, Delon Porcalla