The Court of Appeals has rejected the Puerto Princesa city government's bid to reverse the dismissal of its lawsuit against the Palawan Electric Cooperative over frequent power outages. The ruling states that the National Electrification Administration holds authority over such matters. The complaint should have been filed with the NEA, not the regional trial court.
In 2019, Puerto Princesa Mayor Lucilo Bayron filed a complaint on behalf of the city government against the Palawan Electric Cooperative (Paleco) and its officials, including chairman Jeffrey Tan-Endriga, board members such as Maylene Ballares, Moises Arzaga, Marrieta Seratubias, Julieta Magbanua, Rodolfo Garceron, Rodantes Onda Sr., and Nicolas Contreras, as well as lawyer Raymund Acosta and acting general manager Nelson Lalas. The city claimed Paleco failed to provide adequate, regular, and reliable electricity supply, seeking P1 million in damages for disruptions to government services, the tourism industry, and household appliances.
The Regional Trial Court dismissed the case on August 28, 2020, citing lack of jurisdiction, and denied the motion for reconsideration on September 5, 2022. In a 12-page ruling by the CA's 14th Division, led by Associate Justice Emilio Rodolfo Legaspi III, the petition was deemed without merit, affirming the RTC's decisions as consistent with law and jurisprudence.
The CA held that the National Electrification Administration (NEA) oversees and regulates electric cooperatives under the NEA Reform Act. Allegations of negligence and failure to ensure stable electricity are administrative issues best handled by the NEA, which possesses the necessary technical expertise. Thus, the RTC's dismissal was proper under the doctrine of primary jurisdiction.
"The assailed Orders of the RTC were not shown to be patently erroneous or done in a capricious or whimsical exercise of judgment. Rather, the same were issued in obedience and consistent with pertinent rules and existing jurisprudence," part of the CA ruling stated.