Can the suspension of ERC chief Monalisa Dimalanta be part of a powerplay by big players in the industry? ‘Hindi malayong meron kang masasaling,’ she says
MANILA, Philippines – Suspended Energy Regulatory Commission (ERC) chair Monalisa Dimalanta has asked the Office of the Ombudsman to reconsider the preventive suspension order that it had imposed on her.
“I have already filed a motion for reconsideration last week on the preventive suspension order. We filed it Wednesday last week,” Dimalanta said at the Pandesal Forum on Thursday, September 19.
The Ombudsman’s six-month preventive suspension order on Dimalanta is due to complaints of grave misconduct, abuse of authority, and conduct prejudicial to public service. This stems from a 2023 complaint of the National Association of Electricity Consumers for Reforms (NASECORE), which accused her of failing to adjust Manila Electric Company (Meralco) rates.
In her motion, Dimalanta emphasized that the Meralco case was already resolved as of August 21. The ERC commissioners, by a 3-2 vote, decided not to review Meralco’s rates for the fifth regulatory period, effectively freezing any changes to the distribution rates until June 2026. Dimalanta, who dissented, argued that a rate reset should still be conducted even before the next regulatory period in 2026.
When asked whether her suspension — which targeted only her and none of the other commissioners involved in the case — might be part of a power play by big players in the energy industry, Dimalanta conceded that it was a possibility.
“‘May nasaling ka ba na vested interest?’ Hindi po malayo, ‘yun ‘yung sagot ko,” Dimalanta said on Thursday. “High stakes kasi itong laro dito sa power industry. Hindi malayong meron kang masasaling.”
(‘Did you possibly step on some vested interests?’ It’s not far-fetched, that’s my answer. Because the stakes are high in the power industry. It’s possible that some were affected.)
“Tanggap ko na may mga posibleng may masaling kang vested interest. Kung sino ‘yan, ‘yun siguro po ‘yung hindi pa akong handang magsalita. Ayoko naman to unduly accuse,” she added.
(I accept that it’s possible I may have affected some vested interests. As to who they are, that’s something I’m not ready to speak about yet. I don’t want to unduly accuse.)
Concerns over leadership void, stability
In the meantime, Malacañang has yet to appoint an officer-in-charge to lead the commission in Dimalanta’s absence. Without a chairperson, the ERC cannot call meetings or act on certain matters.
For instance, Dimalanta said that the ERC has been unable to decide on power agreements of 23 electric cooperatives mostly in the Visayas. For regular consumers, this could mean that they would have to put up with higher electricity rates for longer.
“Hanggang stalemate or stalled ‘yung aksyon ng komisyon, walang magiging power supply agreement ang mga ito. Ibig sabihin, aasa sa WESM kukuha ng supply itong mga 23 na electric cooperatives na ito,” Dimalanta said, referring to the Wholesale Electricity Spot Market (WESM).
(As long as the commission’s actions are in a stalemate or stalled, these electric cooperatives will not have any power supply agreements. This means that these 23 electric cooperatives will have to rely on the WESM for their supply.)
WESM is where electricity is traded based on current market conditions, and relying on it can lead to higher and more volatile electricity prices compared to long-term supply agreements. (READ: How does WESM work and affect electric bills?)
The suspension order is also bad for business as the instability could scare off potential investors and derail reforms. For this reason, many of the country’s most prominent business groups have come out in support of Dimalanta and urged a quick resolution of the case.
“Since the appointment of Atty. Dimalanta as chairperson, the ERC has become more active in addressing issues in the industry, acknowledging the important role of energy and power to attract investments, improving the productivity of local industries and enterprises and enhancing the country’s economic competitiveness,” the Philippine Chamber of Commerce and Industry, the Philippine Exporters Confederation, and the Employers Confederation of the Philippines said in a joint statement.
The Management Association of the Philippines (MAP) and the Makati Business Club (MBC) also issued statements of support for Dimalanta.
“We are concerned that the suspension of the ERC Chair would be highly disruptive and unduly delay the approvals of crucial permits and licenses, the decisions on pending cases, and the implementation of much needed energy sector reforms,” MAP said, adding that Dimalanta “demonstrated not only integrity and dedication, but also innovativeness and courage to make bold and prompt decisions.”
“We believe that the six-month suspension order issued by the Ombudsman not only affects investor perception but also affects the certainty of the Philippine business environment given the critical role of power in business and investments,” the MBC said.
“In light of this, we would like to strongly advocate for the immediate return of Atty. Dimalanta to her position to ensure the restoration of integrity of the ERC and to assure our investors and power players of the stability of the Philippine business environment especially the power sector as well as the integrity of our regulatory bodies,” the business group added.
Dimalanta said her camp expects some development by Monday or Tuesday next week. She has yet to receive a copy of the complaint two weeks after the issue became public. – Rappler.com
