3 House panels: Courts have no power to rule on contested power rate billings

By Jovee Marie de la Cruz -  March 2, 2020

https://businessmirror.com.ph/2020/03/02/3-house-panels-courts-have-no-power-to-rule-on-contested-power-rate-billings/

THREE committees of the House of Representatatives questioned the decision of a regional trial court to entertain a case filed by South Premiere Power Corp. (SPPC), contesting its overdue payment to the government amounting to P23.9 billion.

The Committees on Public Accounts, on Good Government and Public Accountability, and on Justice said Branch 208 of the Mandaluyong Regional Trial Court has no jurisdiction over the cases involving electricity rates.

Justice Committee Chairman Vicente Veloso has frowned upon the decision of RTC Branch 208 to entertain a case filed by SPPC, an affiliate of San Miguel Corp. (SMC), contesting P23.9 billion in accumulated billings sent to it by state-owned Power Sector Assets and Liabilities Management (PSALM) Corp. for SPPC’s administration of the 1,200-megawatt Ilijan power plant in Batangas.

The case, filed in 2015, is still pending. The Mandaluyong RTC has prohibited PSALM from terminating its contract with SPPC.

According to Veloso, Section 43 of Republic Act No. 9136, or the Electric Power Industry Reform Act (Epira) of 2001, provides that the ERC “shall have the original and exclusive jurisdiction over all cases contesting rates, fees, fines and penalties imposed by the ERC… and over all cases involving disputes between and among participants or players in the energy sector.”

Veloso said the law does not allow courts lower than the Court of Appeals to meddle in cases involving electricity rates and other power-related issues.

“RTC judges should not entertain such petitions. I will bring up this matter of intervention with the Supreme Court,” said Veloso.

Veloso said the law also provides that ERC decisions may be appealed with the CA.

Anakalusugan Rep. Mike Defensor, who chairs the Public Accounts panel, also expressed dismay over interventions made by some regional trial courts in electricity rate cases.

The Committees on Public Accounts and on Good Government and Public Accountability have launched an inquiry into P95 billion in debts owed by power generators to the government. “Our inquiry is principally in aid of legislation, though we at the same time want to help the executive branch to collect this huge amount of receivables,” said Defensor.

He said the committees believe that Section 43 of Epira “is clear enough on jurisdiction over disputes.”

“But if it needs further clarification for all concerned, including judges …We can recommend remedial legislation,” Defensor said.