519 Phil. 701
GARCIA, J.:
[Petitioner MERALCO's] contention that this Board has no jurisdiction over the subject matter of the instant complaint, which is the restoration of the partial shutdown of the electric service to complainant's building, cannot be upheld. The law gives consumers who have a cause of grievance against any public utility, such as herein [petitioner] MERALCO, a complete, speedy and adequate remedy. That is the purpose of Commonwealth Act No. 146, as amended, creating the Public Service Commission, this Board's predecessor office, and prescribing its duties and powers, and the reason why it was enacted .....[10] (Words in bracket added.)Dissatisfied, MERALCO went to the CA on a petition for certiorari, thereat docketed as CA-G.R. SP No. 56946, assailing as having been issued without jurisdiction or with grave abuse of discretion, the ERB's orders dated October 22, 1999 and December 27, 1999.
The agency charged with regulatory and adjudicatory functions covering the energy sector is the Energy Regulatory Board created under E.O. No. 172 dated May 8, 1987. The nucleus of the ERB was the Board of Energy established by P.D. No. 1206 dated October 6, 1977, which had the power to regulate and fix power rates to be charged by electric companies and to issue certificates of public convenience for the operation of electric power utilities and services. [12]Hence, petitioner MERALCO's present recourse, on the following grounds:xxx xxx xxx
xxx. E.O. No. 172, dated June 5, 1987, saw the further need to create an independent body which gave birth to the present ERB. The aim of course is to achieve a more coherent and effective policy formulation, coordination, implementation and monitoring within the energy sector, and to consolidate in one body all the regulatory and adjudicatory functions covering the energy sector.[13]xxx xxx xxx
There should be no debate then about ERB's possessing jurisdiction to regulate and adjudicate matters relating to its functions as highlighted above. The law clearly affords any customer, like private respondent, a plain, complete and adequate remedy for any grievance against a public utility, and the ERB not only has the right, but the duty as well, to grant relief in proper cases. Relevant provisions of the Public Service Act have been substantially carried over in statutes creating independent specialized agencies, like ERB, with regulatory and adjudicatory powers.[14]
The pivotal issue before the Court turns on whether or not public respondent ERB has jurisdiction to order the reconnection of electric service in cases arising from alleged violation of R. A. No. 7832.A.
THE CONCLUSION OF THE [CA] THAT THE PUBLIC RESPONDENT HAS JURISDICTION TO HEAR CONTROVERSIES BETWEEN PRIVATE RESPONDENT AND PETITIONER ARISING FROM VIOLATION OF THE SERVICE CONTRACT AND CASES FALLING UNDER R.A. 7832 IS CONTRARY TO EXISTING LAW.B.
THE [CA] ERRONEOUSLY CONCLUDED THAT PUBLIC RESPONDENT HAS AUTHORITY TO ISSUE PROVISIONAL REMEDY IN THE NATURE OF WRIT OF PRELIMINARY MANDATORY INJUNCTION. ASSUMING ARGUENDO THAT IT HAS THE POWER, IT VIOLATED R.A. 7832 WHEN IT ORDERED THE RECONNECTION OF SERVICE WITHOUT THE REQUISITE BOND.[15]
- The first regulatory body, the Board of Rate Regulation (BRR), was created by virtue of Act No. 1779.[18] Its regulatory mandate under Section 5 of the law was limited to fixing or regulating rates of every public service corporation.
- In 1913, Act No. 2307[19] created the Board of Public Utility Commissioners (BPUC) to take over the functions of the BRR. By express provision of Act No. 2307, the BPUC was vested with jurisdiction, supervision and control over all public utilities and their properties and franchises.
- On November 7, 1936, Commonwealth Act (C.A.) No. 146, or the Public Service Act (PSA), was passed creating the Public Service Commission (PSC) to replace the BPUC. Like the BPUC, the PSC was expressly granted jurisdiction, supervision and control over public services, with the concomitant authority of calling on the public force to exercise its power, to wit:
Section 14 of C.A. No. 146 defines the term "public service" or "public utility" as including "every individual, copartnership, association, corporation or joint-stock company, . . . that now or hereafter may own, operate, manage or control within the Philippines, for hire or compensation, any common carrier, xxx xxx, electric light, heat, power, xxx xxx, when owned, operated and managed for public use or service within the Philippines xxx xxx." Under the succeeding Section 17(a), the PSC has the power even without prior hearing —SEC. 13. Except as otherwise provided herein, the Commission shall have general supervision and regulation of, jurisdiction and control over, all public utilities, and also over their property, property rights, equipment, facilities and franchises so far as may be necessary for the purpose of carrying out the provisions of this Act, and in the exercise of its authority it shall have the necessary powers and the aid of the public force xxx xxx xxx. (Emphasis supplied)
(a) To investigate, upon its own initiative, or upon complaint in writing, any matter concerning any public service as regards matters under its jurisdiction; to require any public service to furnish safe, adequate and proper service as the public interest may require and warrant, to enforce compliance with any standard, rule, regulation, order or other requirement of this Act or of the Commission, xxx.Given the foregoing consideration, it is valid to say that certain provisions of the PSA (C.A. No. 146, as amended) have been carried over in the executive order, i.e., E.O. No. 172, creating the ERB. Foremost of these relate to the transfer to the ERB of the jurisdiction and control heretofore pertaining to and exercised by the PSC over electric, light and power corporations owned, operated and/or managed for public use or service. And as Section 17(a) of C.A. No. 146, as amended, supra, provides, this jurisdiction and control includes the power to investigate any matter concerning any public service and to require any public utility or public service corporation to furnish adequate and proper service. Any suggestion that the transfer of PSC's functions and powers to the ERB is inconsistent with E.O. No. 172 must be rejected, the principal objective of the said issuance being precisely to reinforce the powers of the ERB as the sole regulatory body over the energy sector.[26]4. Then came Presidential Decree (P.D.) No. 1,[20] reorganizing the national government and implementing the Integrated Reorganization Plan. Under the reorganization plan, jurisdiction, supervision and control over public services related to electric light, and power heretofore vested in the PSC were transferred to the Board of Power and Waterworks (BOPW).
Later, P.D. No. 1206[21] abolished the BOPW. Its powers and function relative to power utilities, including its authority to grant provisional relief,[22] were transferred to the newly-created Board of Energy (BOE).
5. On May 8, 1987, then President Corazon C. Aquino issued E.O. No. 172 reconstituting the BOE into the ERB, transferring the former's functions and powers under P.D. No. 1206 to the latter[23] and consolidating in and entrusting on the ERB "all the regulatory and adjudicatory functions covering the energy sector."[24] Section 14 of E.O. No. 172 states that "(T)he applicable provisions of [C.A.] No. 146, as amended, otherwise known as the "Public Service Act"; xxx and [P.D.] No. 1206, as amended, creating the Department of Energy, shall continue to have full force and effect, except insofar as inconsistent with this Order."[25]
It is fairly clear from the foregoing that the ERB can properly take cognizance of respondent Ti's complaint for reconnection of electric service in ERB Case No. 99-67, touching as it does on the obligation of a public utility to supply adequate electricity and proper service to the consuming public. It bears to reiterate that the ERB, by force of the aforecited Sections 13 and 17(a) of C.A. No 146, as amended, in relation to Section 14 of E.O. No. 172, has jurisdiction, control and supervision over all public services, their franchises and properties, with power to investigate any matter respecting its jurisdiction and to require any public service to furnish safe, adequate and proper service as the public interest may require. To us, the power of control and supervision over public utilities would otherwise be a meaningless delegation were the ERB is precluded from requiring a public utility to reconnect pending the determination of propriety of the disconnection. For sure, respondent Ti's complaint prayed for no other relief than the immediate restoration in his business establishment of electric light and power service, to wit:
- [Respondent Ti] is the owner of ELT Center ... a consumer of electric light and power for its 8-storey building supplied by [Meralco] ... since his operation in October 1998 to the present.
- That ... [Meralco] through its authorized inspectors, agents or representatives swooped down on ...the ELT Building and proceeded by force, ... to disconnect the electric service of [respondent Ti] and in the process seized three (3) electric meters .... The claim of the raiding team that the tampering on the electric meters confiscated was done "n flagrante delicto" is a pure fabrication .... without any factual basis. This unfortunate incident occurred on October 13 and 14, 1999 between the unholy hours of 11:30 pm — 1:30 am ....
- That the Notices of Disconnection dated October 13, 1999 were served at the unholy hours of the night .... when there was nobody in the premises to acknowledge receipt of the same. The three (3) disconnection notices dated October 13, 1999 were served only on the security guard on duty .... xxx
xxx xxx xxx
- A public service corporation like [Meralco] should not resort to unlawful acts in ferreting out electric pilferers like what was done in the instant case .....
- [Meralco] should be reminded of its responsibility as a public service corporation which is clothed with public interest not to resort to oppression and abuse of authority which do not speak well of a giant corporation ....[27]
WHEREFORE premises considered, it is respectfully prayed of this Honorable Board to order respondent Meralco to restore the partial shutdown of electric light and power service that it unlawfully cut-off from the business establishment of herein complainant, pending notice and hearing, and that the order granting provisional relief should be issued immediately upon the filing of this complaint .... to prevent any further serious and irreparable damage and injury to herein complainant.There can be no quibbling that the ERB may investigate and ascertain the propriety of the disconnection due to an alleged violation of R. A. No. 7832. Necessarily, in the course of such investigation, the ERB may, if factually and legally justified, order the electric service provider, petitioner MERALCO in this instance, to reconnect the consumer's, private respondent's in this case, power supply and resume service. Compelling the complaining consumer to still go to court to secure, if proper, a reconnection order, as petitioner's line of argument urges, would be reading into R. A. No. 7832 something not written therein.
That after, notice and hearing, the provisional relief herein Granted should be made PERMANENT.[28]
SEC. 6. Disconnection of Electric Service. — The private electric utility or rural electric cooperative concerned shall have the right and authority to disconnect immediately the electric service after serving a written notice or warning to that effect, without the need of a court or administrative order, and deny restoration of the same, when the owner of the house or establishment concerned or someone acting in his behalf shall have been caught in flagrante delicto doing any of the acts enumerated in Section 4(a) hereof, or when any of the circumstances so enumerated shall have been discovered for the second time: xxx (Emphasis supplied).Inferentially, the express mention of an "administrative order" under the aforequoted provision negates MERALCO's principal submission that only the regular courts may issue orders in matters involving violations of R. A. No. 7832. And more specifically in the subject of disconnection, the legislature thereby implicitly recognized the participation of an administrative body although a public utility need not secure a prior order, whether from the court or from the former, in order to effect a disconnection. Had the intention of Congress been to vest exclusively on the regular courts cases involving violation of R. A. No. 7832, there is simply no sense for it to include the term "administrative order" in Section 6.
SEC. 8. Authority to Grant Provisional Relief. —Furthermore, Section 2, Rule 13 of the Rules of Practice and Procedure Governing Hearings Before the ERB,[33] provides as follows:The [Energy Regulatory] Board may, upon the filing of an application, petition or complaint or at any stage thereafter and without prior hearing, on the basis of supporting papers duly verified or authenticated, grant provisional relief on motion of a party in the case or on its own initiative, without prejudice to a final decision after hearing, should the Board find that the pleadings, together with such affidavits, documents and other evidence which may be submitted in support of the motion, substantially support the provisional order: .... (Emphasis and words in bracket supplied.)
Section 2. Provisional relief. — Upon the filing of an application, petition or complaint, or at any stage thereafter, the Board may grant on motion of the pleader or on its own initiative, the relief prayed for without prejudice to a final decision after completion of the hearing should the Board find that the pleading, together with the affidavits and supporting documents attached thereto and such additional evidence as may have been presented, substantially support the provisional order; Provided: That the Board may, motu proprio, continue to issue orders or grant relief in the exercise of its powers of general supervision under existing laws. (Emphasis supplied.)As hereinabove explained, the ERB is endowed with the authority to hear and adjudicate complaints for reconnection of electric service and to grant provisional or ancillary relief during the pendency of the main action. At bottom then, the ERB did no more than to exercise its legal mandate when it ordered petitioner MERALCO to immediately restore the electric service at respondent Ti's business establishment pending hearing of the main case. The Court finds the ERB's provisional action to be both factually and legally justified. Hence, the imputation of grave abuse of discretion on its part is without leg to stand on.
SEC. 9. Restriction on the Issuance of Restraining Orders or Writs of Injunction. — No writ of injunction or restraining order shall be issued by any court against any private electric utility or rural electric cooperative exercising the right and authority to disconnect electric service as provided in this Act, unless there is prima facie evidence that the disconnection was made with evident bad faith or grave abuse of authority. (Emphasis supplied)The Court remains unconvinced.
[6] Sec. 6. Disconnection of Electric Service. — The private electric utility xxx shall have the right and authority to disconnect immediately the electric service after serving a written notice or warning to that effect, without the need of a court or administrative order, and deny restoration of the same, when the owner of the house or establishment concerned or someone acting in his behalf shall have been caught in flagrante delicto doing any of the acts enumerated in Section 4(a) hereof, or where any of the circumstances so enumerated shall have been discovered for the second time: xxx.xxx xxx xxx
(iv) The presence of a tampered, broken, or fake seal on the meter, or mutilated, altered, or tampered meter recording chart or graph, or computerized chart, graph or log;xxx xxx xxx