Gerochi vs. Department of Energy G.R. No. 159796 July 17, 2007

 

Gerochi vs. Department of Energy

G.R. No. 159796 July 17, 2007

ROMEO P. GEROCHI, KATULONG NG BAYAN (KB) and ENVIRONMENTALIST CONSUMERS NETWORK, INC. (ECN), petitioners

vs

DEPARTMENT OF ENERGY (DOE), ENERGY REGULATORY COMMISSION (ERC), NATIONAL POWER CORPORATION (NPC), POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT GROUP (PSALM Corp.), STRATEGIC POWER UTILITIES GROUP (SPUG), and PANAY ELECTRIC COMPANY INC. (PECO), respondents.

 

FACTS:

 

On June 8, 2001 Congress enacted RA 9136 or the Electric Power Industry Act of 2001. Petitioners Romeo P. Gerochi and company assail the validity of Section 34 of the EPIRA Law for being an undue delegation of the power of taxation. Section 34 provides for the imposition of a “Universal Charge” to all electricity end users after a period of (1) one year after the effectively of the EPIRA Law. The universal charge to be collected would serve as payment for government debts, missionary electrification, equalization of taxes and royalties applied to renewable energy and imported energy, environmental charge and for a charge to account for all forms of cross subsidies for a period not exceeding three years. The universal charge shall be collected by the ERC on a monthly basis from all end users and will then be managed by the PSALM Corp. through the creation of a special trust fund.

 

ISSUE:

 

Whether or not there is an undue delegation of the power to tax on the part of the ERC

 

HELD:

 

No, the universal charge as provided for in section 34 is not a tax but an exaction of the regulatory power (police power) of the state. The universal charge under section 34 is incidental to the regulatory duties of the ERC, hence the provision assailed is not for generation of revenue and therefore it cannot be considered as tax, but an execution of the states police power thru regulation.

 

Moreover, the amount collected is not made certain by the ERC, but by the legislative parameters provided for in the law (RA 9136) itself, it therefore cannot be understood as a rule solely coming from the ERC. The ERC in this case is only a specialized administrative agency which is tasked of executing a subordinate legislation issued by congress; which before execution must pass both the completeness test and the sufficiency of standard test. The court in appreciating Section 34 of RA 9136 in its entirety finds the said law and the assailed portions free from any constitutional defect and thus deemed complete and sufficient in form.

Comments

Post a Comment

Popular posts from this blog

Cruz vs Secretary of DENR GR. No. 135385, Dec. 6, 2000

Cruz vs Secretary of DENR Natural Resources and Environmental Law; Constitutional Law; IPRA; Regalian Doctrine   GR. No. 135385, Dec. 6, 2000   FACTS : Petitioners Isagani Cruz and Cesar Europa filed a suit for prohibition and mandamus as citizens and taxpayers, assailing the constitutionality of certain provisions of Republic Act No. 8371, otherwise known as the Indigenous People’s Rights Act of 1997 (IPRA) and its implementing rules and regulations (IRR). The petitioners assail certain provisions of the IPRA and its IRR on the ground that these amount to an unlawful deprivation of the State’s ownership over lands of the public domain as well as minerals and other natural resources therein, in violation of the regalian doctrine embodied in section 2, Article XII of the Constitution.   ISSUE : Do the provisions of IPRA contravene the Constitution?   HELD : No, the provisions of IPRA do not contravene the Constitution. Examining the IPRA, there...
Read more

LAWYERS LEAGUE FOR A BETTER PHILIPPINES vs. AQUINO G.R. No. 73748

  [President Corazon C. Aquino] was installed by direct sovereignty, the people. The people have accepted the Aquino government which is in effective control of the entire country. It is not merely a de facto government but in fact and law a je jure government; and the community of nations has recognized the legitimacy of the new government. LAWYERS LEAGUE FOR A BETTER PHILIPPINES vs. AQUINO (G.R. No. 73748 - May 22, 1986) (There is no "Full-Text" of this case. This is a Minute Resolution made by the SC.) Minute Resolutions EN BANC   SIRS/MESDAMES: Quoted hereunder, for your information, is a resolution of this Court MAY 22, 1986. In G.R. No. 73748, Lawyers League for a Better Philippines vs. President Corazon C. Aquino, et al .; G.R. No. 73972, People's Crusade for Supremacy of the Constitution vs. Mrs. Cory Aquino, et al ., and G.R. No. 73990, Councilor Clifton U. Ganay vs. Corazon C. Aquino, et al ., the legitimacy of the government of President Aquin...
Read more

Francisco v. House of Representatives, G.R. No. 160261, November 10, 2003,

V erba legis , that is, wherever possible, the words used in the Constitution must be given their  ordinary meaning  except where technical terms are employed. ERNESTO B. FRANCISCO, JR. vs. THE HOUSE OF REPRESENTATIVES G.R. No. 160261. November 10, 2003. http://lapispapelatereyser.blogspot.com/2012/10/case-digest_9528.html FACTS: On July 22, 2002, the House of Representatives adopted a Resolution, sponsored by Representative Felix William D. Fuentebella, which directed the Committee on Justice "to conduct an investigation, in aid of legislation, on the manner of disbursements and expenditures by the Chief Justice of the Supreme Court of the Judiciary Development Fund (JDF)."   On June 2, 2003, former President Joseph E. Estrada filed an impeachment complaint against Chief Justice Hilario G. Davide Jr. and seven Associate Justices of this Court for "culpable violation of the Constitution, betrayal of the public trust and other high crimes." The complaint ...
Read more