The Taguig City Regional Trial Court (RTC) has extended to 20 days from 72 hours the temporary restraining order (TRO) issued against two Manila Electric Co. (Meralco) biddings for 1,000 megawatts (MW) worth of power supply.

The Taguig RTC said Meralco virtually waived its right to reply when the company “presented no evidence to overturn the finding” of the court in granting the earlier TRO, issued

In its order issued August 2, the court said it extended the TRO duration after evaluating affidavits and sworn testimony given by the petitioner which warned of the biddings’ disastrous impact on Malampaya gas and the future of the country’s energy security.

The TRO was in response to a petition for injunction filed by operators of the Malampaya gas project against the Meralco bidding be done through competitive selection process (CSP) originally scheduled on on August 2 and August 9.

The Taguig RTC said Meralco virtually waived its right to reply when the company “presented no evidence to overturn the finding” of the court in granting the earlier TRO, issued

“Wherefore premises considered, this Court resolves as it hereby resolves to extend the previously issued 72-hour TRO to 20-day TRO enjoining the Manila Electric Co. and all other persons, agents, individuals, employees and representatives acting under its instructions and authority from conducting its CSP, under its current Terms of Reference (TOR), including the receipt of bids, the awards and the implementation of any award arising therefrom,” the Taguig RTC said in its decision.

The TRO stemmed from a petition for injunction filed by members of the Malampaya consortium including Prime Energy, UC 38 LLC, Prime Oil and Gas Inc. and the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) to stop Meralco’s CSPs for 1,000 MW electricity.

“The extension given is without prejudice to the resolution of the merits, of the complaint which shall be threshed out in a full-blown trial. Let further proceeding for the prayed Writ of Preliminary Injunction be set on August 28, 2024 at 2:00 in the afternoon,” the court further said.

In an earlier statement, the Malampaya consortium said it sought “clarity on its role in the energy market in the same way that generators and distribution utilities need clarity.”

“There are a number of conflicting policies relative to the prioritization of indigenous resources and its implementation as part of a CSP, among others,” the consortium said.

Amid the said development, Donabel Kuizon-Cruz, Prime Energy managing director and general manager testified before the court last Friday on the supposed disastrous impact of the CSPs on the exploration and development of indigenous natural gas sector.

Cruz, testified in court that support for the Malampaya project and the consortium operating it was crucial as the government has a substantial share in revenue generated by the gas field.

She said unless the CSPs were permanently stopped by the court, power generating firms using imported liquefied natural gas (LNG) and coal would dominate the energy sector, defeating several government objectives including plans to reduce pollution, lower power rates and promote local fuel industries.

Emphasizing that the support for the Malampaya project and the consortium operating it is crucial, the Prime Energy executive cited that the national government earns 60 percent of net revenue from Malampaya sales and has so far received more than $13 billion since the gas field’s operation.

The petition said Meralco’s TOR should be blocked by the court since it violated state policy and the Electric Power Industry Reform Act which mandate preference for indigenous gas as fuel in power generation.

“Worse, the Meralco TOR incorporated terms and conditions which practically deny the power suppliers using indigenous natural gas as a fuel source the opportunity to fairly participate,” the petition said.

It claimed if the Meralco CSP was not stopped, it would put the Philippines “in a situation where a significant portion of our power supply is placed in the hands of imported coal and imported LNG.”

Earlier, Jose Ronald Valles, Meralco senior vice president and head of regulatory management, said the company’s CSP proceedings are all in accordance with current rules.

“We would like to stress however that all CSPs for our supply requirements are done in accordance with existing rules of Department of Energy and Energy Regulatory Commission. It is our mandate to ensure that we conduct these in a timely manner, as delay will expose our consumers to unnecessary burden in the amount of billions of pesos in the form of higher power rates,” Valles said in an earlier statement.