The Philippine Competition Commission (PCC) is conducting a motu proprio investigation on power generation companies for possible collusion or anti-competitive behavior when several power plants went on shutdown last month.
The Energy Regulatory Commission (ERC) previously signed an agreement with the PCC for the acquisition, sharing and access to information if such practices are experienced in the energy sector.
The Electric Power Industry Reform Act of 2001 and several ERC issuances penalize abuse and anti-competitive behavior with P10,000 to P10 million in fines and one to two years of jail time.
“Hopefully in the coming weeks, months, we’ll be able to get more information. I wish I can say more about the specific details (but I) can’t say who are the parties specifically being investigated right now but that’s where we are now,” said Arsenio Balisacan, PCC chairman, in a webinar hosted by the Economic Journalists Association of the Philippines over the weekend.
Balisacan said the PCC is working with the Department of Energy while a task force has been organized to coordinate in securing information, documents and evidence “to get the case moving.”
In the same forum Jay Layug, former DOE undersecretary, said there is no business reason to deliberately shut down a plant since this will result in losses.
Layug also said it is also virtually impossible to collude and artificially bring down prices under the current wholesale electricity spot market rules wherein bidding for power supply occurs every five minutes.
