By
Lenie Lectura - December 7, 2017
The Energy Regulatory
Commission (ERC) is expected to file a motion for reconsideration (MR)
following a Court of Appeals (CA) decision that declared the validity the
November and December 2013 spot-market prices.
“We have received
decision of the Court of Appeals, and we have until December 12 to file a
motion for reconsideration. The MR is currently being prepared,” said ERC
Spokesman lawyer Rexie Digal.
In a 42-page decision,
the fifth division of the appellate court said the assailed orders dated March
3, 2014, March 27, 2014, May 9, 2014, and October 15, 2014, of the ERC in ERC
Case 2014-021 MC are declared null and void and set aside.
“Accordingly, the
prices for the November and December 2013 supply months in the WESM [Wholesale
Electricity Spot Market] are reinstated and declared valid,” the CA decision
stated.
According to the ERC,
the decision was dated November 7.
The CA said the
assailed ERC orders were issued in violation of the constitution and laws
rendered without any factual and legal basis. It said that the ERC committed
errors of fact and law in the exercise of its quasi-judicial functions that
warrant the reversal of the assailed orders.
“During the issuance of
the March 3 order, the ERC had no credible basis to conclude that the entire
power-generation industry withheld capacity in the controversial ‘tight supply
months’ of November and December 2013 and precisely because the IU
[investigating unit] has not yet concluded its investigation.
“Such erroneous act is
basically akin to having a judge issuing a final sentence on a defendant even
if the trial on the case is still ongoing,” the CA said.
The ERC’s IU released a
report that identified 11 power-generating firms allegedly engaged in
anticompetitive practices of generation companies (gencos).
The 11 gencos
identified in the report are the Power Sector Assets and Liabilities Management
Corp., Pan-Asia Energy Holdings, Therma Mobile (TMO), CIP II Power Corp.,
Trans-Asia Power Generation Corp., 1590 Bauang, AP Renewables Inc., Udenna
Management Resources Corp., Strategic Power Development Corp., GNPower
Mariveles Coal Plant Ltd. and SEM-Calaca.
The country’s largest
power-distribution utility firm, Manila Electric Co. (Meralco), was also found
to have committed “market abuse” during the November and December 2013 supply
months.
Based on the report,
Meralco was included because of its agreement with TMO and the manner by which
its supply deal with the power producer was carried out.
The case stemmed from
the P4.15 per-kilowatt-hour (kWh) rate hike that Meralco was supposed to
collect in December 2013, and the P5.33 per-kWh rate increase that was supposed
to be collected in January 2014. Its implementation, however, was stopped by
the Supreme Court.
Prior to the release of
the report conducted by the ERC IU, the Philippine Electricity Market
Corp. also identified the same players that breached the so-called
must-offer WESM rule.
Under the must-offer
rule, gencos registered in the WESM must declare and offer the maximum
generating capacities of their power facilities in the spot market.
With the order
reinstated, this means that consumers would have to pay more for electricity
charges.
No comments:
Post a Comment