DOJ asked to probe alleged collusion on power rate hike

MANILA, Philippines—Cause-oriented and party-list groups on Monday asked the Department of Justice to investigate possible cartelization of several power firms causing a sharp increase in power rate this month.

The group particularly pointed to possible collusion between Meralco, First Gas Power Corporation, San Miguel Corporation, Kepco Philippines, Aboitiz Power, Team Energy Corporation, AES Philippines and DMCI Holdings, Incorporated following the simultaneous and unscheduled shutdown of their plants resulting to more load deficits in the Luzon grid forcing Meralco to buy a more expensive power from the Wholesale Electricity Spot Market or WESM.

“The expected and scheduled maintenance of Malampaya notwithstanding—an event Meralco was aware of more than six months before its occurrence—and Meralco’s claim that such was not anticipated, and the unscheduled shutdown of several power plants that resulted to Meralco’s recourse to expensive electricity from the WESM, are information that point to a contrived scenario of extreme short-term shortage of electricity for the purpose of raising the price of electricity beyond what it would cost to generate it,” they said.

The groups went to the DoJ after the Energy Regulatory Commission (ERC) approved the amount of P4.15/kWh increase sought by Meralco.

Signatories to the letter/petition include Akbayan Representatives Walden Bello and Barry Gutierrez, economist Maitet Diokno of the Center for Power Issues and Initiatives (CPII), Wilson Fortaleza of Partido ng Manggagawa (PM) and NAGKAISA, and Freedom from Debt Coalition (FDC) President Ricardo Reyes.