Dimalanta’s Legal Fight Raises Concerns For Energy Sector Stability

Suspended Energy Regulatory Commission (ERC) Chairperson Monalisa Dimalanta, a single mother of two, has found herself at the center of a political and legal maelstrom.

Industry leaders rally behind ERC Chair Monalisa Dimalanta: Major industry associations, including the Management Association of the Philippines (MAP) and Wind Energy Developers Association (WEDA), continue to voice their support for ERC Chair Monalisa Dimalanta amidst her legal battle and preventive suspension. | Photo: American Chamber of Commerce (AMCHAM)

On September 23, Dimalanta appeared as a guest speaker at The Monday Circle, a forum aimed at promoting financial literacy and intelligent investing.

Her appearance was particularly significant as it followed what many have cited as a controversial suspension by the Office of the Ombudsman, which issued a six-month preventive suspension order on August 27, 2024.

The suspension stems from a complaint filed by the National Association of Electricity Consumers for Reforms Inc. (NASECORE), accusing Dimalanta of grave misconduct, abuse of authority, and conduct prejudicial to public service.

NASECORE alleged that the ERC, under Dimalanta's leadership, delayed action on a petition to recalculate Meralco’s rates, leading to unauthorized consumer billing through purchases from the Wholesale Electricity Spot Market (WESM).

However, Dimalanta contends that the issue was resolved on August 21—six days before her suspension order was issued.

A Single Mother Being Singled Out?

Despite the ERC functioning as an independent, quasi-judicial regulatory body—where decisions are made collectively by its five-member board—Dimalanta's suspension has sparked controversy for targeting her alone.

Industry experts are questioning why she is being held solely responsible, especially since she was one of two dissenting votes in a 3-2 decision not to review Meralco’s rates for the fifth regulatory period, effectively freezing any changes until 2026.

As Dimalanta explained at The Monday Circle, the matter was resolved by the board before the Ombudsman’s order. She has since filed a motion for reconsideration, arguing that her suspension lacks merit given the prior ERC resolution.

Insiders are puzzled as to why she is being singled out, pointing to the ERC’s collective decision-making structure. Some speculate that her previous role as a legal officer for a private company may have made her an easy target in the ongoing political dynamics of the energy sector.

Industry Rallies Behind Dimalanta

In what has become an uphill legal battle, Dimalanta is not alone.

Several major industry groups have thrown their support behind her, citing concerns about the suspension’s potential impact on the energy sector, which is already facing a looming crisis.

The Management Association of the Philippines (MAP), Retail Electricity Suppliers Association (RESA), Wind Energy Developers Association of the Philippines (WEDAP), and other business organizations like the Makati Business Club (MBC), Employers Confederation of the Philippines (ECOP), Philippine Exporters Confederation, Inc. (PHILEXPORT), and the Philippine Chamber of Commerce and Industry (PCCI) have called for a swift resolution of the case, warning that Dimalanta’s absence at this critical time could have far-reaching consequences.

"The MAP is extremely concerned about how this suspension impacts the energy sector at a time when it faces critical and urgent challenges," the group said in a statement. RESA added that without stable leadership at the ERC, the energy sector could face significant disruptions, jeopardizing the country’s power security.

WEDAP and the Pilipinas Offshore Wind Energy Resource Association, Inc. (POWER) also appealed for a quick resolution, noting, "It is of paramount importance for the industry to have a fully functional ERC, particularly with Chairperson Dimalanta’s experience in navigating these complex issues."

Legal and Regulatory Bottlenecks

As Dimalanta fights the suspension, questions have emerged regarding the bottlenecks within the ERC that may have contributed to delays in addressing Meralco’s rate recalculation.

Critics argue that while the ERC decided on the matter on August 21, the decision was not immediately communicated to the public, allowing confusion to fester.

When asked about this delay, Dimalanta pointed to procedural backlogs and communication challenges that she intends to address upon her return.

The suspension order from the Ombudsman remains shrouded in controversy, as the legal basis for suspending only Dimalanta—while the ERC operates as a collegial body—has yet to be fully explained.

Dimalanta’s supporters argue that due process was not followed and that the preventive suspension lacks justification, particularly given that the board votes collectively on all its decisions.

Energy Crisis Looms

As the country braces for a potential energy crisis next year, Dimalanta’s suspension adds another layer of uncertainty to an already volatile sector.

Many fear that prolonged instability at the ERC could hinder progress in addressing the nation’s power supply challenges. President Ferdinand Marcos Jr. is being urged to closely monitor the situation to ensure that no further disruptions derail the Philippines’ economic recovery.

With major energy stakeholders rallying for her return and Dimalanta continuing to fight the legal battle, the coming months will determine not just her fate but also the stability of the country’s energy regulatory framework.

NASECORE’s Response

In a curious twist, NASECORE recently filed a motion for indirect contempt and a gag order to prevent Dimalanta from speaking publicly about the case. This move comes despite the fact that the ERC acted on NASECORE’s petition, although the majority voted against it.

Questions arise as to why NASECORE would seek to silence her rather than allow the public to understand the complexities of the case, further deepening the intrigue surrounding Dimalanta’s suspension.

As the legal and regulatory drama continues to unfold, the energy sector is watching closely, knowing that the outcome of this case could have lasting implications for the industry and the nation’s energy future.