ERC not Remiss of its Mandate
The Energy Regulatory Commission (ERC) refutes allegations that it has been remiss of its mandate, particularly in the promulgation of the “Competition Rules and Complaint Procedures” that penalizes abuse of market power and/or anti-competitive behaviour relevant to the operation of the Philippine Wholesale Electricity Spot Market (WESM).
“The Competition Rules were promulgated on 23 August 2006. Let it be noted that the commercial operations of the WESM started only in June 2006. The drafting of the Rules started in 2001, but due to the novel concepts and complex issues involved, especially considering the dearth of local precedents and case studies, extensive and exhaustive consultations with industry stakeholders were held. This was also consistent with the ERC’s established practice of subjecting its draft Rules to public consultation for transparency and due process,” ERC Commissioner and Officer-In-Charge Alejandro Z. Barin clarified. The said statement was made in the light of reports published in major dailies that blamed the ERC for failing to come up with the competition rules relative to the alleged WESM price manipulation.
The ERC is awaiting the report regarding the probable occurrence of anti-competitive behaviour. The Philippine Electricity Market Corporation (PEMC) is the entity tasked to conduct the investigation. If anti-competitive behaviour is established and duly reported to the ERC, appropriate remedies such as directives to fix or control the price will be issued and the appropriate penalties imposed, after observance of the requirements of due process. The ERC will evaluate and validate PEMC’s report according to set procedures.
“Rest assured that the ERC is doing its job towards a successfully transformed electric industry mandated by the Electric Power Industry Reform Act (EPIRA). The spot market is new in the electricity industry and has been operational only for four (4) months. The ERC enjoins the stakeholders to do their respective parts to ensure the triumph of a truly competitive electricity market,” Officer-In-Charge Barin concluded.
October 20, 2006