Posted on September 30, 2016
THE Court
of Appeals (CA) has upheld an Energy Regulatory Commission (ERC) ruling
rejecting the sale of the Dasmariñas-Abubot-Rosario (DAR) sub-transmission
lines/assets (STAs) in Cavite to Manila Electric Co. (Meralco).
The 14th division of CA dismissed
Meralco’s petition for review, ruling: “We find no reversible error on the part
of the ERC when it disapproved the sale of DAR to Meralco.”
The case stems from December 2011, when Meralco signed a contract of sale for STAs and other equipment with National Transmission Corp. (Transco).
Transco was created through the Electric Power Industry Reform Act (EPIRA) of 2001 and operates and manages power transmission systems nationwide. Transco was succeeded by National Grid Corporation Philippines (NGCP), which is also a respondent to the case.
On April 22, 2013, the ERC granted provisional approval for the sale, clearing the P109-million sale of the Tayabas 115-kilovolt (kV) line and Ternate Substation Equipment. In the same ruling, it barred Meralco from acquiring the P60-million DAR 115-kV line and equipment from the Rosario Substation.
The ERC noted that DAR STAs serve areas under the Cavite Economic Zone (CEZ) and, under the EPIRA, sub-transmission assets serving multiple utilities should first be sold to a consortium.
The ERC decision reads: “In order for the acquisition of the said assets to prosper, TransCo and Meralco may file a new application with the Commission through a consortium with CEZ.
Meralco then filed its appeal before the CA.
The CA said it recognizes the authority of the ERC, noting: “The regulation of distribution of electricity to end-users and fixing of rates call for a technical examination and a specialized review of specific details which the ERC is more equipped to enter; hence, such matters are primarily entrusted to the said regulating authority.”
“As priorly discussed, Meralco must first form a consortium with CEZ so that the newly formed entity could be granted the right to take over the operation of Dasma-Rosario STAs,” the decision further reads.
Associate Justice Renato C. Francisco wrote the 28-page decision.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. -- Kristine Joy V. Patag
The case stems from December 2011, when Meralco signed a contract of sale for STAs and other equipment with National Transmission Corp. (Transco).
Transco was created through the Electric Power Industry Reform Act (EPIRA) of 2001 and operates and manages power transmission systems nationwide. Transco was succeeded by National Grid Corporation Philippines (NGCP), which is also a respondent to the case.
On April 22, 2013, the ERC granted provisional approval for the sale, clearing the P109-million sale of the Tayabas 115-kilovolt (kV) line and Ternate Substation Equipment. In the same ruling, it barred Meralco from acquiring the P60-million DAR 115-kV line and equipment from the Rosario Substation.
The ERC noted that DAR STAs serve areas under the Cavite Economic Zone (CEZ) and, under the EPIRA, sub-transmission assets serving multiple utilities should first be sold to a consortium.
The ERC decision reads: “In order for the acquisition of the said assets to prosper, TransCo and Meralco may file a new application with the Commission through a consortium with CEZ.
Meralco then filed its appeal before the CA.
The CA said it recognizes the authority of the ERC, noting: “The regulation of distribution of electricity to end-users and fixing of rates call for a technical examination and a specialized review of specific details which the ERC is more equipped to enter; hence, such matters are primarily entrusted to the said regulating authority.”
“As priorly discussed, Meralco must first form a consortium with CEZ so that the newly formed entity could be granted the right to take over the operation of Dasma-Rosario STAs,” the decision further reads.
Associate Justice Renato C. Francisco wrote the 28-page decision.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. -- Kristine Joy V. Patag
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