SC won’t review CA ruling vs NEA over Benguet power co-op takeover
BAGUIO CITY—The Supreme Court has declined to review a 2024 Court of Appeals (CA) ruling that rebuked the National Electrification Administration (NEA) for government overreach after it appointed its preferred manager to the utility serving Baguio and Benguet, which triggered a leadership standoff and a failed police takeover in 2021.
In a June 30 notice from the Supreme Court’s First Division, received only on Dec. 10, it dismissed a petition for review on certiorari filed by the NEA Board of Administrators questioning the CA Fifth Division’s July 9, 2024 decision.
The high court’s First Division “resolved to deny the petition for failure of the petitioners to sufficiently show that the [CA] committed any reversible error in the challenged decision and resolution … as to warrant the exercise of this Court’s discretionary appellate jurisdiction,” according to the notice issued by Division Clerk of Court Maria Teresa Simbulo. The resolution referred to a CA issuance dated Jan. 6 this year, which the Inquirer has yet to access.
The Supreme Court’s action effectively allows the CA ruling to stand. In its decision penned by Associate Justice Jaime Fortunato Caringa, the appellate court found that the NEA Board “committed grave abuse of discretion” and “exceeded its authority by appointing (former Presidential Communications Office Assistant Secretary under President Rodrigo Duterte Ana Maria Paz) Rafael, a power that should have been exercised by the Beneco (Benguet Electric Cooperative) board of directors itself.”
“Corollary, the appointment of Rafael by the NEA (board) is null and void,” the CA ruled. It also invalidated all NEA board orders justifying Rafael’s appointment amid public concerns over her qualifications to lead a power utility.
Public criticism
The CA had admonished the NEA for abusing its authority when it designated the former Palace official under the Duterte administration as manager of Beneco.
At the time, the NEA board overruled the Beneco board of directors, which had invoked an approved succession mechanism elevating deputy manager Melchor Licoben to the top post following the death of his predecessor, Gerardo Versoza, in 2020.
Amid strong opposition from consumers, Beneco workers, and local officials, the NEA ordered a police takeover of Beneco’s main office in Baguio on Oct. 18, 2021.
The move was foiled two days later when hundreds of Baguio and Benguet residents and Beneco employees marched to reclaim the facility. The regulator’s actions drew criticism even from national officials.
NEA Administrator Antonio Almeda, appointed by President Marcos in 2023, later resolved the dispute by removing the NEA appointee Rafael as well as the Beneco board.
He then restarted the selection process, which resulted in Licoben’s reappointment.
The Supreme Court action was not mentioned during a power sector forum organized by Beneco on Monday.
Instead, Licoben discussed Beneco’s plans moving forward, highlighting its ongoing transition to automation, or a “smart grid.”
