April 2016 - Philippine Supreme Court Decisions/Resolutions
Philippine Supreme Court Jurisprudence
G.R. No. 201852, April 05, 2016 - ROBERTO G. ROSALES, NICANOR M. BRIONES, PONCIANO D. PAYUYO, JOSE R. PING-AY, ISIDRO Q. LICO, AND JOSE TAN RAMIREZ, IN THEIR CAPACITY AS MEMBERS OF THE BOARD OF DIRECTORS OF NATIONAL ALLIANCE FOR CONSUMER EMPOWERMENT OF ELECTRIC COOPERATIVES AND ON BEHALF OF THE NINE MILLION (9,000,000) MEMBER CONSUMERS OF NEA-ELECTRIC COOPERATIVES NATIONWIDE WHO HAVE CONTRIBUTED THE MEMBERS' CONTRIBUTIONS FOR CAPITAL EXPENDITURES (MCC) OR REINVESTMENT FUND FOR SUSTAINABLE CAPITAL EXPENDITURES (RFSC), Petitioners, v. ENERGY REGULATORY COMMISSION (ERC), ASELCO, AKELCO, ALECO, ANTECO, AURELCO, BATELEC I, BATELEC II, BENECO, BILECO, BOHECO I, BOHECO II, FIBECO, BUSECO, CAGELCO I, CAGELCO II, CASURECO I, CASURECO II, CASURECO III, CASURECO IV, CAMELCO, CAPELCO, CEBECO I, CEBECO II, CEBECO III, CENECO, CENPELCO, DORECO, DASURECO, ESAMELCO, FLECO, GUIMELCO, IFELCO, INEC, ISECO, ILECO I, ILECO II, ILECO III, ISELCO I, KAELCO, LUELCO, SORECO I, LANECO, LEYECO I/DORELCO, LEYECO II, LEYECO III, LEYECO IV, LEYECO V, PENELCO, MOELCO I, MOELCO II, MORESCO I, MORESCO II, MOPRECO, NORECO I, NORSAMELCO, NEECO I, NEECO II - Area I, NEECO II - Area II, PELCO I, PELCO II, CANORECO, PRESCO, QUEZELCO I, QUEZELCO II, SAMELCO I, SAMELCO II, SIARELCO, SOCOTECO I, SOCOTECO II, SOLECO, SUKELCO, SURNECO, SURSECO I, SURSECO II, TARELCO I, TARELCO II, VRESCO, ZAMECO I, ZAMECO II, ZAMCELCO, ZANECO, ZAMSURECO I, ZAMSURECO II, BATANELCO, LUBELCO, OMECO, ORMECO, MARELCO, TIELCO, ROMELCO, BISELCO, FICELCO, MACELCO, TISELCO, BANELCO, PROSIELCO, CELCO, COTELCO, TAWELCO, SIASELCO, SULECO, BASELCO, CASELCO, LASURECO, MAGELCO, DIELCO, and COTELCO-PALMA, Respondents.
EN BANC
G.R. No. 201852, April 05, 2016
ROBERTO G. ROSALES, NICANOR M. BRIONES, PONCIANO D. PAYUYO, JOSE R. PING-AY, ISIDRO Q. LICO, AND JOSE TAN RAMIREZ, IN THEIR CAPACITY AS MEMBERS OF THE BOARD OF DIRECTORS OF NATIONAL ALLIANCE FOR CONSUMER EMPOWERMENT OF ELECTRIC COOPERATIVES AND ON BEHALF OF THE NINE MILLION (9,000,000) MEMBER CONSUMERS OF NEA-ELECTRIC COOPERATIVES NATIONWIDE WHO HAVE CONTRIBUTED THE MEMBERS' CONTRIBUTIONS FOR CAPITAL EXPENDITURES (MCC) OR REINVESTMENT FUND FOR SUSTAINABLE CAPITAL EXPENDITURES (RFSC), Petitioners, v. ENERGY REGULATORY COMMISSION (ERC), ASELCO, AKELCO, ALECO, ANTECO, AURELCO, BATELEC I, BATELEC II, BENECO, BILECO, BOHECO I, BOHECO II, FIBECO, BUSECO, CAGELCO I, CAGELCO II, CASURECO I, CASURECO II, CASURECO III, CASURECO IV, CAMELCO, CAPELCO, CEBECO I, CEBECO II, CEBECO III, CENECO, CENPELCO, DORECO, DASURECO, ESAMELCO, FLECO, GUIMELCO, IFELCO, INEC, ISECO, ILECO I, ILECO II, ILECO III, ISELCO I, KAELCO, LUELCO, SORECO I, LANECO, LEYECO I/DORELCO, LEYECO II, LEYECO III, LEYECO IV, LEYECO V, PENELCO, MOELCO I, MOELCO II, MORESCO I, MORESCO II, MOPRECO, NORECO I, NORSAMELCO, NEECO I, NEECO II - Area I, NEECO II - Area II, PELCO I, PELCO II, CANORECO, PRESCO, QUEZELCO I, QUEZELCO II, SAMELCO I, SAMELCO II, SIARELCO, SOCOTECO I, SOCOTECO II, SOLECO, SUKELCO, SURNECO, SURSECO I, SURSECO II, TARELCO I, TARELCO II, VRESCO, ZAMECO I, ZAMECO II, ZAMCELCO, ZANECO, ZAMSURECO I, ZAMSURECO II, BATANELCO, LUBELCO, OMECO, ORMECO, MARELCO, TIELCO, ROMELCO, BISELCO, FICELCO, MACELCO, TISELCO, BANELCO, PROSIELCO, CELCO, COTELCO, TAWELCO, SIASELCO, SULECO, BASELCO, CASELCO, LASURECO, MAGELCO, DIELCO, and COTELCO-PALMA, Respondents.
D E C I S I O N
PERALTA, J.:
This petition for certiorari under Rule 65 of the Rules of Court (Rules) seeks to declare the illegality and unconstitutionality of the Members' Contribution for Capital Expenditures (MCC), later renamed as Reinvestment Fund for Sustainable Capital Expenditures (RFSC), which is being imposed by on-grid Electric Cooperatives (ECs), pursuant to the following Rules and Resolution of the Energy Regulatory Commission (ERC):
1. Rules for Setting the Electric Cooperatives' Wheeling Rates (RSEC-WR), which was adopted in Resolution No. 20, Series of 2009, issued on September 23, 2009;1 and
2. Resolution No. 14, Series of 2011, issued on July 6, 2011.2
In particular, Article 5 of RSEC-WR states:
ARTICLE 5
MEMBERS' CONTRIBUTION FOR CAPITAL EXPENDITURES
5.1 Function of Members' Contribution for Capital Expenditures
The Members' Contribution for Capital Expenditures is envisioned to fund the amortization or debt service of its indebtedness associated with the expansion, rehabilitation or upgrading of the existing electric power system of the ECs in accordance with their ERC-approved Capital Expenditure Plan.
5.2 Utilization of Members' Contribution for Capital Expenditures
The utilization of the Member's Contribution fund shall be subject to the following conditions:
chanRoblesvirtualLawlibrarya. It shall be used solely for capital expenditure or any other projects approved by the Commission and not for any other purpose, even on a temporary basis;In the case of ECs registered under the CDA, the said member-contribution shall be converted into member's share capital.
b. The amounts collected for Members' Contribution fund shall be recognized as contribution from member- consumers;
c. The amounts collected for Members' Contribution, including interest income, shall be placed in a separate account; and
d. If the member-consumer terminates its contract with the EC, the said contribution shall not be withdrawn, instead the same shall be treated as Contribution in Aid of Construction (CIAC).
5.3