The Taguig City regional trial court (RTC) on Wednesday, July 31, stopped the Manila Electric Company (Meralco) from proceeding with the bidding for 1,000 megawatts (MW) of additional power supply.

The temporary restraining order (TRO) issued against Meralco was ordered by RTC Executive Judge Byron G. San Pedro on a case filed by the consortium operating the Malampaya Gas Field -- Prime Energy, Prime Oil and Gas Inc, UC38 LLC, and the Philippine National Oil Exploration Corp. (PNOC-EC).

“Upon evaluation of the allegations contained in the verified complaint for injunction, it appears from the facts shown that great or irreparable injury would result to the plaintiffs-applicants before the writ of preliminary injunction could be heard. In other words, there exists EXTREME URGENT NECESSITY for the writ as to warrant the issuance of Temporary Restaining Order to prevent further damages to the plaintiffs’ interests, the government and the environment,” Judge San Pedro's order stated.

With the order, the Malampaya Gas Field consortium was directed to post a bond gefore the TRO could be implemented.

“Upon posting a TRO bond which is hereby fixed in the amount of five million pesos (P5,000,000), let a Temporary Restraining Order effective for 72 hours be issued in favor of the plaintiffs-applicants enjoining the respondent Manila Electric Company from conducting its competitive bidding selection process (CSP), under its current Terms of Reference, including the receipt of bids, the award and the implementation of any award arising from (it),” the RTC ordered. 

The bid submission deadline for the competitive selection process (CSP) of Meralco is set this Aug, 2 for the 600 MW and Sept. 3 for the 400 MW.

In its complaint, the Malampaya consortium alleged that the bid terms violate the reference given to indigenous natural gas under the existing laws and creates a direct threat to the country’s energy security and energy sovereignty.

The consortium alleged that the terms of reference (TOR) governing the bids set by Meralco itself, should be put on hold because it “violates the preference given to indigenous natural gas under relevant laws, rules and regulations.”

It was referring to provisions in the Electric Power Industry Reform Act (EPIRA) and orders issued by the Department of Energy (DOE) which gives preference to local natural gas in power generation.

Meralco’s TOR, it said “unduly disadvantages power suppliers which use ING (indigenous natural gas) as a fuel source.”

“Increased reliance on imported sources of fuel threatens the country’s energy security and energy sovereignty because these are greatly susceptible to a volatile market,” it also said. 

If the biddings push through, it “would put the country in a situation where a significant portion of our power supply is placed in the hands of imported coal and imported liquefied natural gas, the prices of both are notoriously unstable and extremely subject to external shocks in the market.”