Title
Manila Electric Co. vs. Energy Regulatory Board
Case
G.R. No. 145399
Decision Date
Mar 17, 2006
MERALCO challenged ERB's authority to order reconnection after disconnecting Ti's service for alleged meter tampering; SC upheld ERB's jurisdiction and provisional relief powers.

Case Summary (G.R. No. 205741)

Factual Background

On October 18, 1999, Edgar L. Ti filed a verified complaint with the ERB, asserting that MERALCO unlawfully disconnected electric service at his business premises at Little Baguio, San Juan, Metro Manila. He claimed that the disconnection was executed without proper notice or opportunity for him to contest it, causing irreparable harm to his business. The ERB issued a provisional order on October 22, 1999, directing MERALCO to restore service while the complaint was under consideration.

MERALCO's Response

In response, MERALCO sought reconsideration of the ERB’s provisional reconnection order, asserting that their inspection indicated Ti’s involvement in meter tampering, which violated R.A. No. 7832 and justified immediate disconnection. MERALCO contended that the ERB lacked jurisdiction to provide provisional relief related to such disconnections, claiming that such authority resided exclusively with regular courts. MERALCO also filed a criminal complaint against Ti for the alleged violation.

ERB's Orders

On December 27, 1999, the ERB denied MERALCO’s motion for reconsideration, reaffirming the provisional order for reconnection. The ERB asserted its jurisdiction over complaints regarding the restoration of electrical service and emphasized the need for regulatory oversight of public utilities, including ensuring compliance with customer service standards.

Court of Appeals Decision

MERALCO subsequently petitioned the Court of Appeals, which affirmed the ERB's positions in its decision dated September 22, 2000. The appellate court found that the ERB held the necessary jurisdiction under Executive Order No. 172 and applicable law to adjudicate issues surrounding electric service reconnections. The court reiterated that consumers are entitled to remedies from public utilities and that regulatory agencies have broad authority to enforce compliance.

Legal Issues Presented

MERALCO raised several legal issues on appeal, primarily questioning the ERB's jurisdiction and authority to issue provisional remedies without a prior hearing. MERALCO argued that the ERB's actions constituted a grave abuse of discretion. Notably, they contended that Section 9 of R.A. No. 7832 restricted the issuance of injunctions against utilities without a finding of bad faith.

Jurisdiction of the ERB

The Court responded that jurisdiction is determined by statutory law and ruled that the ERB is empowered to investigate consumer complaints regarding public utilities. The authority to grant provisional relief is embedded within the ERB's enabling statutes, reinforcing the agency’s ability to ensure consumers receive prompt and efficient services, which includes the right to reconnect electricity during investigations.

Provisional Relief Authority

The Court underscored

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