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Draft Competition Rules, Guidelines, Complaints Procedures, and comments

I. NOTICE, ERC Case No. 2003-47

Notice is hereby given that the proposed Competition Rules, Competition Guidelines, and Complaint Procedures for the Promotion of Competition and Market Development and Providing Penalties for Abuse of Market Power, Cartelization and Anti-Competitive or Discriminatory Behavior is scheduled for public consultation on March 19, 2003 at nine o'clock (9:00 AM) in the morning at the Energy Regulatory Commission (ERC) Hearing Room, 15th Floor, Pacific Center Bldg., San Miguel Avenue, Ortigas Center, Pasig City.

All interested parties may submit their written comments (both hard and soft copies) on the proposed guidelines on or before March 7, 2003. Only parties who have filed their written comments on or before the prescribed period would be allowed to participate in the above scheduled public consultation. The proposed guidelines may be photocopied, at cost, during the usual office hours at the ERC Main Office at the abovementioned address and downloadable from the ERC website at www.erc.gov.ph.

PROCEDURES FOR CONSULTATION ON COMPETITION RULES, COMPETITION GUIDELINE AND COMPLAINT PROCEDURE RULES

Pursuant to Section 45 of the Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001, the Energy Regulatory Commission (ERC) is required to promulgate:

rules and regulations (the “Competition Rules”) to ensure and promote competition, encourage market development and customer choice and discourage/penalize abuse of market power, cartelization and any anti-competitive or discriminatory behaviour, in order to further the intent of the Act and protect the public interest; and
rules and regulations (the “Complaint Procedure Rules”) to provide for a complaint procedure that, without limitation, provides the accused party with notice and an opportunity to be heard.

Today, the ERC has issued its proposed Competition Rules, together with an accompanying Competition Guideline and Complaint Procedure Rules. The Competition Rules prohibit anti competitive conduct affecting the electric power industry, such as agreements which substantially lessen competition, price-fixing agreements, the misuse of market power, and asset or share acquisitions, corporate mergers and corporate consolidations which substantially lessen competition. The accompanying Competition Guideline is intended to provide guidance to participants in the electric power industry and the general public as to the approach that the ERC will generally adopt in administering and enforcing the Competition Rules. The Complaint Procedure Rules govern the procedures that apply in relation to the investigation and prosecution of matters that may constitute a violation of the Competition Rules, as well as the procedures that apply in relation to the adjudication of those matters by the ERC.

The Competition Rules, Competition Guideline and Complaint Procedure Rules, together with a summary presentation on them, have been posted on the ERC’s website at www.erc.gov.ph.

The consultation process shall proceed as follows:
Interested parties may fax or e-mail written comments or questions on the proposed rules and guideline, which must be received by the ERC prior to close of business on March 7, 2003. All written comments or questions will be published on the website as these are received.

The ERC shall prepare responses to such comments or questions and post these on its website prior to the day of the verbal consultation. As such, any written comments and questions provided shall be considered read, and do not need to be reiterated further in the verbal consultation.

The verbal consultation shall be held on March 19, 2003. This session shall commence at 9:00 AM, break for lunch at 12:00 PM, resume at 2:00 PM and end at 4:00 PM, or earlier should there be no further comment or discussion for the day. No irrelevant requests for adjournment or delay of the verbal consultation shall be entertained. Only parties who have lodged written comments or questions with the ERC prior to close of business on March 7, 2003 will be entitled to participate in the verbal consultation. All parties must have read the material posted on the ERC’s website prior to the verbal consultation.

Questions raised during the hearing, and not answered at the hearing, shall have answers prepared by the ERC which will be posted on its website as soon as is practical.

The ERC expects that, for the purposes of the verbal consultation, all parties shall limit their participation to new areas of comment or new questions. The ERC shall reserve its right to limit repetition of comments or questions previously raised and answered. Additional discussion of detailed points is encouraged, but the ERC shall in some instances take the question on notice for detailed response on its website.

Following the verbal consultation, the ERC shall work to finalize its consideration of all the written and verbal comments raised during the consultation process in a timely manner. Interested parties may submit their comments by either fax at 633-3229, 631-7287, and 631-5879 or email to consumer@erc.gov.ph, attention of Atty Maria Corazon C. Gines or to legal@erc.gov.ph, attention of Atty. Maria Teresa R. Castaneda of the Consumer Affairs Legal Service.
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