ERC chief exploring legal options amid 6-month suspension

MANILA, Philippines — Suspended Energy Regulatory Commission (ERC) chief Monalisa Dimalanta is studying all legal remedies to overturn the Office of the Ombudsman’s decision to put her under preventive suspension for six months.

But Dimalanta said she would comply with the order and would “immediately cease to perform (my) functions” in the agency. She gave assurance that all operations of the ERC “shall continue to function.”

She also confirmed in a statement yesterday that her office received the suspension order, which stemmed from an administrative complaint the National Association of Electricity Consumers for Reforms filed in November 2023.

The group complained that Dimalanta allowed Manila Electric Co. to regularly purchase electricity from the Wholesale Electricity Spot Market at higher prices, while Meralco passed on the charges to consumers without the required prior approval of the ERC, in violation of the Electric Power Industry Reform Act or EPIRA.

“The order does contain some allegations of the complaint without providing, however, any statement as to the evidence submitted by the complainant that became the basis for the issuance of the preventive suspension order,” Dimalanta said.

In her absence, the Office of the President is expected to appoint an officer-in-charge from one of the four ERC commissioners.

Under the EPIRA, the same law that created the ERC, the presence of at least three members of the commission shall constitute a quorum, and the majority vote of two members is needed to adopt any ruling, order, resolution or decision.

A four-member quorum, however, might face challenges as a tie would result in no decisive vote, potentially causing delays in the approval of generation, distribution and transmission projects.

Three Philippine business groups – Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation and Employers Confederation of the Philippines – expressed concern over the suspension and called for prompt case resolution to ensure that the ERC can continue to enforce regulations for the benefit of the public.

“This decision along with other recent decisions by the judiciary puts at risk the trust, independence and authority of the ERC,” the groups said in a statement yesterday.

They said regulators are essential in creating an environment where firms invest, consumers are protected and economic growth is sustainable.

“We advocate for a swift and transparent resolution of the suspension to restore the integrity of the ERC and its Commission, so that it may continue its mission to enforce energy regulations on behalf of Philippine consumers, business and energy investors,” the groups said.

The business groups also expressed their support for the ERC and Dimalanta’s leadership.

“Since the appointment of Atty. Dimalanta as chairperson, the ERC has become more active in addressing issues in the industry, acknowledging the important role of energy and power to attract investments, improving the productivity of local industries and enterprises and enhancing the country’s economic competitiveness,” the business groups said.

They also said the ERC has achieved many milestones under Dimalanta’s leadership, which include the reset of the transmission and distribution rates of ERC’s regulated entities, the integration of ERC processes into the Energy Virtual One Shared System and the issuance of the revised rules and guidelines on Certificates of Compliance and Competitive Selection Process. — Louella Desiderio