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MANILA, Philippines — Militant lawmakers slammed the Energy Regulatory Commissions’ order for a re-computation of power rate hikes imposed last December and January, saying the regulatory body should have also applied sanctions on whoever jacked up the rates beyond justifiable levels.
In an order released to the public on Tuesday, the ERC ordered the Philippine Electricity Market Corp. to recalculate electricity prices from November to December, saying it had found that these appeared unjustified in light of the deliberate power plant maintenance shutdowns and “under-offers” of power capacity during the supply period.
ACT Teachers Representative Antonio Tinio said the ERC should be filing charges for violation of the Electric Power Industry Reform Act or Epira.
“It was clear in their findings that the increase of prices in the wholesale electricity spot market was a result of manipulation, withholding of supply. It’s as if the generation companies hoarded their supply to create a situation where prices would rise,” Tinio said at a press briefing.
He said the Epira empowered the ERC to penalize these players.
“It’s clear that the ERC became afraid and reneged on its duty to penalize these [generation companies]. Let’s hold the ERC responsible for this because they fell short of their task and just passed on the responsibility to the PEMC,” he said.
He said the violation committed could be abuse of market power, which has the prescribed penalty of imprisonment and fines ranging from P10,000 to P10 million.
If ERC commissioners cannot do their job, they should resign, he added.
The ERC’s ruling was “deceptive” and “ironic,” Bayan Muna Representative Carlos Zarate said at the same briefing, adding that since the price increases were a result of manipulation, consumers should not be made to pay for them.
Zarate said that if the ERC refused to do its duty, it could be held liable for violating the anti-graft and corrupt practices act.
“What we’re saying is that the ERC seems to be letting those responsible for manipulating the market off the hook. They’re saying there’s a crime but there was no criminal. How could that happen?” he said.
He said this was not just a failure of the market, but a failure of the Epira and of deregulation.
Zarate also criticized the ERC’s order to the PEMC to conduct further investigation on the failure to follow the “must offer,” which requires generators to declare their capacities.
“It’s like ordering Janet Napoles to investigate the pork barrel scam,” he said, referring to the person who allegedly operated a network of non-governmental organizations that were used to funnel lawmakers’ pork barrel to private pockets.
According to him, the PEMC was supposed to have been the first line of defense for consumers, but this has not been the case.
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