ERC Keeps an Eye on the Electricity Market's Behavior
“The Energy Regulatory Commission (ERC) assures the public that it is keeping an eye on the behavior of the electricity market,” ERC Executive Director Saturnino C. Juan said in response to the reports that an investigation is being conducted by the Philippine Electricity Market Corporation (PEMC) on the alleged price manipulation at the market. “The ERC recognizes that the market should be self-regulating and is to be governed by its internal enforcement mechanism. However, as a guard versus anti-competitive behavior in the market, the ERC exercises oversight authority over the WESM by constantly monitoring the market operations and is, in fact, currently awaiting the result of the pertained investigation and will thereafter undertake appropriate action, if warranted. It is noteworthy that the ERC welcomes and appreciates PEMC’s conduct of an investigation,” Executive Director Juan stressed. This statement is issued relative to the frequent occurrences of extremely high load weighted average prices in the market since 03 October 2006 (Tuesday).
Pursuant to Section 43 (r) of the Electric Power Industry Reform Act (EPIRA), the ERC, in the exercise of its investigative and quasi-judicial powers, shall act against any participant or player in the energy sector for violation of any law, rule and regulation governing the same, including the rules on cross-ownership, anti-competitive practices, abuse of market positions and similar or related acts, and shall require any person or entity to submit any report or data relative to any investigation or hearing conducted relative thereto.
As can be recalled, the ERC exercised its power to suspend the operation of the market when typhoon Milenyo hit Luzon. Upon in-depth analysis which proved that the conditions under which the market was suspended ceased to exist, the ERC ordered the resumption of the market’s normal operation effective on 03 October 2006, 0000H. It must be noted that the ERC is empowered to impose penalties and to issue order fixing or controlling the price, at which electricity may be supplied or acquired, in case anti-competitive behavior in the electricity market is proven.
“All electricity stakeholders are encouraged to be one with the ERC in vigilantly monitoring the activities of the market to make sure that the envisioned competitive electricity industry is achieved for the benefit of the consuming public and the country as well,” Executive Director Juan concluded.
October 12, 2006