Back

NATIONAL ASSOCIATION OF ELECTRICIY CONSUMERS FOR REFORMS, INC. (NASECORE), REPRESENTED BY PETRONILO ILAGAN; FEDERATION OF VILLAGE ASSOCIATIONS (FOVA), REPRESENTED BY SIEFRIEDO VELOSO; AND FEDERATION OF LAS PIÑAS VILLAGE (FOLVA), REPRESENTED BY BONIFACIO DAZO, PETITIONERS, VS. ENERGY REGULATORY COMMISSION (ERC) AND MANILA ELECTRIC COMPANY, INC. (MERALCO), RESPONDENTS.

NATIONAL ASSOCIATION OF ELECTRICIY CONSUMERS FOR REFORMS, INC. (NASECORE), REPRESENTED BY PETRONILO ILAGAN; FEDERATION OF VILLAGE ASSOCIATIONS (FOVA), REPRESENTED BY SIEFRIEDO VELOSO; AND FEDERATION OF LAS PIÑAS VILLAGE (FOLVA), REPRESENTED BY BONIFACIO DAZO, PETITIONERS, VS. ENERGY REGULATORY COMMISSION (ERC) AND MANILA ELECTRIC COMPANY, INC. (MERALCO), RESPONDENTS.

G. R. No. 190795 | 2011-07-06

SECOND DIVISION
 
D E C I S I O N
 
SERENO, J.:
The Energy Regulatory Commission (ERC), created under the Electric Power Industry Reform Act of 2001(EPIRA),[1] used to apply the Return on Rate Base (RORB) method to determine the proper amount a distribution utility (DU) may charge for the services it provides. The RORB scheme had been the method for computing allowable electricity charges in the Philippines for decades, before the onset of the EPIRA. Section 43(f) of the EPIRA allows the ERC to shift from the RORB methodology to alternative forms of internationally accepted rate-setting methodology, subject to multiple...