Judicial interference undermining power industry reforms

Power industry reforms may be undermined if the courts continue to issue adverse rulings, according to a private think tank.

"If this prevents us from moving forward with the needed reforms, we will suffer brownouts once again — and electricity consumers will be the ultimate losers," said Antonio Hombrebueno, chairman of the Foundation for National Development (FND).

A few days ago, the Supreme Court issued a "status quo order" to the Energy Regulatory Commission (ERC) suspending the implementation of the 12-centavo increase in the power rates of power retail giant Manila Electric Company.

Several activist groups have questioned the ERC decision.

Hombrebueno said "there is an unmistakable note of urgency in the statements of businessmen and investors operating in the Philippines, as the country is being pushed by mob rule towards another power crisis we will all regret."

"Too much intervention from the courts is a turn-off for investors," said Astro del Castillo, director of the Association of Securities Analysts Federation.

"When the Supreme Court can step in and override what should be normal regulatory functions, it brings uncertainty to the marketplace," economist Peter Wallace said.