CA Rules on Energy Regulatory Commission Chairperson’s Inhibition
The Court of Appeals (CA) has ruled that the Energy Regulatory Commission (ERC) Chairperson Monalisa C. Dimalanta should have recused herself from the proceedings concerning the National Grid Corporation of the Philippines’ (NGCP) rate application. This decision highlights concerns about impartiality and fairness in administrative hearings.
According to sources familiar with the matter, the CA issued its decision on April 30, declaring that Dimalanta “gravely abused her discretion when she refused to inhibit from the proceedings a quo (4th Regulatory Period Reset Application or RPRA for 2016 to 2022) despite her evident bias and partiality against petitioner” — referring to the NGCP.
Background of the Case and Key Issues
The NGCP petitioned the CA after Chairperson Dimalanta made public statements that seemingly prejudged the outcome of their rate application. These statements, reported widely in the media, suggested an expected reduction in the company’s transmission charges even before the formal filing of the application. The NGCP argued that these premature comments compromised their right to a fair administrative process.
Despite several motions for inhibition filed by the NGCP, Dimalanta refused to step aside. The NGCP then sought the Court of Appeals’ intervention, requesting a temporary restraining order (TRO) to stop her participation in the case.
Legal Grounds for the CA’s Decision
The CA emphasized the importance of impartiality in quasi-judicial proceedings, noting that the ERC’s role requires discretion based on evidence presented during hearings. The court pointed out that “it is the ‘cardinal primary right’ of parties in an administrative proceeding that the decision be rendered on the evidence presented at the hearing, or at least contained in the record and disclosed to the parties affected.”
In this case, the CA found that Dimalanta had already formed an opinion about the application’s result before the NGCP submitted any evidence, thus undermining the fairness of the process. The court stated, “Respondent could not be expected to render a fair judgment when she already has an outcome in mind, waiting only to be formalized after petitioner undergoes the charade of a formal hearing.”
Details of the Proceedings and Statements
Records show that on September 28, 2022, the ERC issued a resolution amending provisions for setting transmission wheeling rates. The NGCP was then required to file its 4th RPRA covering 2016 to 2022, a process involving forecasting expenses and projects for a five-year regulatory period.
On October 3, 2022, Dimalanta held a press briefing commenting on the expected results of the reset process. After NGCP filed its application on December 22, 2022, she again publicly commented on the anticipated reduction of transmission charges. This series of remarks prompted the NGCP to file motions for her inhibition.
In her March 3, 2023 explanation, Dimalanta defended her public statements, saying the ERC acts as a collegial body and no single commissioner decides outcomes alone. She denied any bias or prejudgment against the NGCP. However, the NGCP remained unsatisfied and elevated the matter to the CA.
CA’s Final Ruling and Implications
The CA granted the NGCP’s petition, setting aside Dimalanta’s explanation and ruling that she should have recused herself from the case. The court underscored that maintaining trust and impartiality is essential, stating, “At the very first sign of lack of faith and trust in her actions, whether well-grounded or not, respondent has no other alternative but to inhibit herself from the case.”
The court declared the motion for inhibition granted and rendered the request for a temporary restraining order moot and academic.
This ruling underscores the critical need for transparency and fairness in administrative regulatory proceedings, ensuring that decision-makers refrain from premature conclusions that might affect the parties’ rights.
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