Connect with us

Hi, what are you looking for?


SC affirms ruling on Meralco, Napocor settlement


THE Supreme Court (SC) has upheld the validity of a settlement agreement between the Manila Electric Co. (Meralco) and National Power Corp. (Napocor) worth P20.05 million.

In a 24-page resolution on Sept. 28 and made public on Oct. 20, the SC First Division said the Court of Appeals did not commit an error when it ruled the agreement between the two firms was not “disadvantageous to the government.”

“To reiterate, there is no longer any arbitrable dispute to speak of when Meralco and [Napocor] agreed to settle any dispute between them under the contract for the sale of electricity (CSE) through mediation,” the High Court said.

In 2003, a settlement agreement was reached by Meralco and Napocor where the private firm agreed to pay P20.05 million for 18,222 gigawatt-hours (GWh) over a dispute related to the sale of electricity to the government.

The obligation was later reduced to P14 million after Meralco made gradual payments to Napocor between the years 2003 and 2004.

The two firms had brought the dispute to mediation, which was overseen by former World Energy Council Chairman Antonio V. del Rosario.

Edgardo M. del Fonso, former president of Power Sector Assets and Liabilities Management Corp., represented Napocor while Meralco was represented by its former president and chief operating officer.

Meralco and Napocor entered into a contract for the sale of electricity (CSE) in 1994. The agreement obligated Napocor to supply Meralco with power while the latter had to purchase a minimum volume of power and energy at rates approved by the Energy Regulatory Board.

At that time, Napocor is engaged in generating, supplying, and selling electricity to distribution utilities approved by the government.

Meralco, a private corporation, obtained a franchise to operate and maintain a distribution system in Metro Manila, Bulacan, Cavite, and Rizal, among other municipalities and cities.

Executive Order No. 215 allowed private sector involvement in operating electric generating plants which can sell to the grid.

“This issue can hardly be considered a dispute, much less one arising from the CSE,” said the High Court. “Parties should not be barred from resorting to mediation, which, ordinarily, is a less adversarial and more conciliatory process than arbitration.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — John Victor D. Ordoñez

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



REUTERS By Luisa Maria Jacinta C. Jocson, Reporter FACTORY ACTIVITY in the Philippines expanded for a tenth month in a row in November, although...


Passengers wait inside the Ninoy Aquino International Airport Terminal 3 in Pasay City, Oct. 29. The growth in remittances is expected to slow next...


Philippine flags are displayed along the streets, June 3. — PHILIPPINE STAR/ EDD GUMBAN By Revin Mikhael D. Ochave, Reporter THE JOINT Foreign Chambers...


Workers prepare relief packs in Pasig City, Aug. 13, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS LOCAL GOVERNMENT units (LGUs) should be given more time...


IN separate advisories, the Securities and Exchange Commission (SEC) has warned the public not to invest in CashBaka, Hero Mining International Group, and


SHIVENDU SHUKLA-UNSPLASH D.M. CONSUNJI, Inc.’s (DMCI) order book declined by 8.1% to P45.3 billion for the past three quarters from P49.3 billion in the...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.