G.R. No. 127373 - Energy Regulatory Board vs. Court of Appeals

The National Power Corporation (NPC) normally supplies electric power through private utility firms that are granted franchises over specific areas.
In this case, certain private enterprises—members of the Association of Mindanao Industries (AMI)—bypassed the designated franchise holder and obtained power directly from the NPC.
Iligan Light & Power, Inc. (ILPI), a petitioner, sought to discontinue this direct supply to protect its franchise area and interests.

On October 12, 1993, ILPI filed a petition with the Energy Regulatory Board (ERB) for the implementation of the 1987 Cabinet Policy Reforms in the Power Sector.
The petition specifically requested that the direct supply of power by the NPC to industries within ILPI’s franchise area be terminated.
ILPI argued that it could satisfy or even exceed the financial and technical standards set by the ERB as provided under the Cabinet Policy Reforms.
The Cabinet Policy Reforms allowed direct connection for industries until the appropriate regulatory board determined that such a connection was no longer necessary.

The ERB, in response to ILPI’s petition, initially processed the case and later denied AMI’s motion to dismiss in open court on January 4, 1994.
AMI raised several defenses, including lack of jurisdiction by the ERB, failure of the petition to state a valid cause of action, and the non-joinder of indispensable parties.
Both the ERB and ILPI subsequently filed separate motions for reconsideration which were denied in an order dated April 7, 1994.
The Court of Appeals (CA) eventually set aside the ERB’s action by holding that jurisdiction over direct connection/disconnection issues had been transferred to the Department of Energy (DOE).

Whether the Energy Regulatory Board (ERB) has jurisdiction to hear and decide cases involving the direct connection and disconnection of power supply to industries.

Whether the Court of Appeals erred in holding that the ERB lacked jurisdiction over the petition for implementation of the Cabinet Policy Reforms in the Power Sector.
Whether the Cabinet Policy Reforms validly conferred upon the ERB the authority to determine that NPC’s direct connection is no longer necessary in a franchise area.
Whether the precedents set in the NPC and Phividec cases are applicable to the present dispute regarding the allocation of jurisdiction between the ERB and the DOE.