G.R. No. 254440. March 23, 2022.
INDEPENDENT ELECTRICITY MARKET OPERATOR OF THE PHILIPPINES, INC. (IEMOP), PETITIONER, VS. ENERGY REGULATORY COMMISSION, RESPONDENT.

FACTS

The Electric Power Industry Reform Act of 2001 (EPIRA) established the Wholesale Electricity Spot Market (WESM). Initially, the Philippine Electricity Market Corporation (PEMC) was the Autonomous Group Market Operator (AGMO). Pursuant to Department of Energy Circular No. DC2018-01-0002 and an approved transition plan, an Independent Market Operator (IMO), separate from PEMC, was to be established. Petitioner Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) was incorporated as a non-stock, non-profit private corporation to become this IMO. On September 26, 2018, IEMOP assumed the Market Operator functions from PEMC under an Operating Agreement. On August 18, 2020, IEMOP filed with the Energy Regulatory Commission (ERC) a Market Fees Application for Calendar Year 2021. The ERC, via an email dated September 1, 2020, returned the application “as directed by superiors,” advising that PEMC should be the applicant instead. IEMOP submitted further compliance documents and repeatedly requested action from the ERC, but the latter did not respond. IEMOP filed a Petition for Mandamus to compel the ERC to act upon its application. The ERC argued it did not neglect its duty as it had acted by rejecting the application due to lacking requirements and because PEMC, not IEMOP, was the proper applicant.

ISSUE

Whether the Energy Regulatory Commission (ERC) may be compelled by a writ of mandamus to act upon and consider the Market Fees Application filed by IEMOP.

RULING

Yes. The Supreme Court granted the petition and issued a writ of mandamus compelling the ERC to accept, process, and resolve IEMOP’s Market Fees Application with dispatch. The Court held that the ERC has a clear legal duty under EPIRA and its own rules to act upon applications for approval of market fees. The ERC’s refusal to accept and process IEMOP’s application, based solely on its directive that PEMC should be the applicant, constituted an unlawful neglect of that duty. The Court found that IEMOP is the duly authorized Market Operator, having lawfully assumed the function from PEMC in accordance with the DOE Circular and transition plan, which the ERC is legally bound to enforce. The ERC’s inaction was a palpable excess of authority and resulted in manifest injustice, as it jeopardized the continued operation of the WESM. Mandamus lies to compel the performance of a ministerial duty when there is unjustified delay and a clear legal right. The ERC was ordered to proceed with the application in accordance with the procedure outlined in its own Rules of Practice and Procedure.