No recommendations yet on power collusion

Justice Secretary Leila de Lima INQUIRER.net FILE PHOTO

MANILA, Philippines—The Office of the Competition investigating the collusion among power suppliers that caused a sharp increase in power rate failed to meet its deadline in coming up with recommendations on the issue.

Justice Secretary Leila De Lima on Thursday told reporters that she is still waiting for the recommendation.

“As of this very moment, I have yet to receive a recommendation from them,” De Lima said.

She said the issues involved are complex and highly technical “it is understandable that this [probe] is time consuming.”

The Office for Competition of the DOJ is conducting an investigation on possible collusion between power firms that led to an all-time increase in power rate.

Consumers will pay an additional P2.41 per kwh in their December bill, P1.21 per kwh in their February 2014 bill and P0.53 per kwh in March.

The Office for Competition under the DOJ can receive any form of complaint as a basis for inquiry or further study on possible violations of laws, prohibiting cartelization, monopolies or combinations in restraint of trade.

Late last year, 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 urged the DOJ to look for possible violations and collusion of power firms.

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.

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