ERC will act with dispatch upon receipt of investigation report

In light of the recent news on the alleged anti-competitive behavior in the spot market, the Energy Regulatory Commission (ERC) will conduct an investigation upon receipt of the report from the Philippine Electricity Market Corporation (PEMC).

The ERC has made an earlier position that it will allow the market to self-regulate in this instance, intervening only if necessary.

“We are still awaiting the results of the investigation conducted by the Market Surveillance Committee (MSC) and reportedly confirmed by the Philippine Electricity Market Board (PEM Board). There is no formal receipt of the report yet. Nevertheless, upon receipt of such report, the ERC will act with dispatch on this because of national interest,” said Chairman Rodolfo B. Albano, Jr.

Based on Section 45 of the R.A. 9136 or the Electric Power Industry Reform Act (EPIRA), the ERC may motu proprio take cognizance of the investigation results or if disputed by PSALM, treat it as a petition for dispute resolution by the former against MSC and/or PEM Board. ERC’s actions shall include the verification of the facts stated in the investigation report, consistent with due process requirements, and the determination of whether the concerned entities acted within the limits of their respective authorities. In resolving the investigation or dispute, the ERC may, in the exercise of its authority and if warranted by the evidence adduced, impose price controls and order the disgorgement of excess profits.

“We assure the public that ERC will act with dispatch and utmost impartiality on this matter. We remain true to our mandate to promote competition, encourage market development, ensure customer choice and penalize abuse of market power,” Chairman Albano stressed.

November 23, 2006