The Taguig City Regional Trial Court (RTC) has granted a 20-day extension to the temporary restraining order (TRO) blocking Manila Electric Company’s (MERALCO) bidding processes for an additional 1,000 megawatts (MW) of power supply, extending the original 72-hour halt.
Manila Standard reported that this extension came after a petition from Malampaya gas project operators who filed for an injunction against the bidding processes scheduled for August 2 and September 3.
In an order issued on August 2, the Taguig RTC extended the TRO to 20 days after it had assessed affidavits and testimony from the petitioners, who warned of the bidding’s potential negative impact on the Malampaya gas project and the country’s energy security. Meanwhile, MERALCO presented no evidence to counter the court’s initial TRO.
Because of this, the court resolved to extend the previously issued 72-hour TRO to a 20-day TRO, prohibiting MERALCO and its representatives from conducting its competitive bidding selection process (CSP) under its current Terms of Reference.
The court has extended the TRO initially granted on July 31 and extended on August 2 to cover both CSPs. This extension is made without affecting the upcoming trial, which will fully address the merits of the complaint on August 28, 2024.
In response to the extended TRO, MERALCO said it is currently reviewing the court order with their legal counsel and gauging the delays in the bidding process, which could result in increased power rates that could affect the customers of the franchise.
“Despite these challenges, Meralco remains steadfast in our commitment to comply with all applicable laws and regulations. In line with the principle of sub judice, MERALCO will refrain from commenting on the merits of the ongoing legal proceedings,” said MERALCO Senior Vice President and Head of Regulatory Management Atty. Jose Ronald V. Valles.
The petition stated that MERALCO’s CSPs violated state policy and the Electric Power Industry Reform Act (EPIRA), which mandates a preference for indigenous gas in power generation.
MERALCO emphasized that their Competitive Selection Process (CSP) adheres to the guidelines set by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC). Additionally, the DOE has approved the CSP by issuing a Certificate of Conformity, and both the DOE and ERC have verified that there are no issues with the Terms of Reference (TOR) for the 1000MW CSPs.
