MANILA, Philippines — The Supreme Court (SC) has upheld the authority of the Department of Energy (DOE), Energy Regulatory Commission (ERC), and National Renewable Energy Board (NREB) to determine how the fixed tariff system for renewable energy is implemented under the Renewable Energy Act of 2008.

On Monday, according to a decision written by Senior Associate Justice Marvic M.V.F. Leonen, the SC En Banc upheld the validity of Sections 6 and 7 of Republic Act No. 9513, which aim to promote the growth of renewable energy and reduce greenhouse gas emissions.

Section 6 of the law establishes the Renewable Portfolio Standard, requiring power suppliers and distribution utilities to source a minimum portion of electricity from renewable sources, with the minimum percentage set by the NREB.

Section 7 introduces the Feed-In Tariff (FIT) System, which provides incentives to renewable energy developers through fixed tariff payments and priority access to the grid.

To implement these provisions, the DOE, ERC, and NREB issued resolutions approving tariff rates and created the FIT Rules and FIT Guidelines. These include the FIT Allowance—a separate charge on consumer electricity bills used to fund renewable energy initiatives.

Several individuals and groups challenged the legality of these issuances, arguing that the agencies exercised legislative powers that belong to Congress. They claimed Sections 6 and 7 were too general and lacked clear standards, resulting in an invalid delegation of legislative authority. They also opposed the advance collection of the FIT Allowance and alleged the issuances violated due process due to the lack of notice and public consultations.

The SC affirmed the Court of Appeals’ earlier decision, ruling that the law is complete and provides clear standards. It explained that Congress may authorize agencies to set rules and rates on technical matters requiring expertise.

The Court emphasized that delegating legislative authority to administrative agencies is necessary to handle complex and technical issues. It found that Sections 6 and 7 contain specific guidance and limitations, ensuring agencies operate within defined boundaries.

On the issue of FIT Allowance, the SC upheld its advance collection, clarifying that while renewable energy must be produced before receiving FIT benefits, the law does not prohibit advance collection to support the system. It also found this consistent with the law’s policy to accelerate renewable energy development and establish supporting infrastructure.

The Court further ruled that the NREB complied with notice and publication requirements under ERC Rules of Practice and Procedure. It noted that the petition to draft a new rule and notice of hearing were published twice in two newspapers of general circulation for two consecutive weeks, satisfying public notice requirements.

In his concurring opinion, Chief Justice Alexander G. Gesmundo said the issuances are not subject to notice and hearing requirements, as they do not substantially increase the burden of electric power industry participants.

Associate Justice Amy C. Lazaro-Javier, in her concurring opinion, upheld the advance collection of the FIT Allowance as a legitimate exercise of police power.