The Department of Justice (DOJ) on Monday, December 16, said it is set to investigate the P4.15 per kilowatt-hour power rate hike announced by Manila Electric Co. (Meralco) this month amid the issue of possible collusion between the power generation companies.
DOJ Secretary Leila De Lima said she has directed the DOJ’s Office for Competition to look into possible market abuse which led to the power hike. She also said she wanted to have a report on the inquiry by January next year.
The announcement came after several groups on Monday have filed a formal complaint asking the Office for Compensation to investigate the possible collusion between the power generator firms.
Executive Order No. 45 series of 2011 has designated DOJ as the Competition Authority, which created the Office for Competition to receive any complaints on possible violations of laws prohibiting cartelization, monopolies, or combinations in restraint of trade as defined in competition laws.
In a letter-complaint addressed to de Lima, the groups led by Akbayan slammed the Energy Regulatory Commission (ERC) over its approval on the P4.15 per kWh, considered as the highest rate ever, without public hearings.
The ERC last week approved the proposal of Meralco to distribute the power hike in three tranches, starting this month of December.
The groups said this price hike will only add to the economic burden of the consumers who are still reeling from price increases of basic commodities like liquefied petroleum gas, Metro Rail Transit fares, aside from those affected by Super Typhoon Yolanda that devastated the Eastern Visayas.
In particular, the petitioners pointed the possible conspiracy by Meralco, First Gas Power Corporation, San Miguel Corporation, Kepco Philippines, Aboitiz Power, Team Energy Corporation, AES Philippines and DMCI Holdings, Incorporated after their plants went into simultaneous and unscheduled shutdown.
These series of plant shutdowns have resulted in low supply in the Luzon grid and “forced Meralco to buy a more expensive power from the Wholesale Electricity Spot Market or WESM.”
It argued that the maintenance shutdown of Malampaya and unscheduled shutdown of several power plants “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,” petitioners said, noting that the Meralco is aware of the Malampaya shutdown more than six months before its occurrence.
Signatories to the petition include Akbayan Rep. Walden Bello and Barry Gutierrez, Representative Raymund Mendoza of Trade Union Congress of the Philippines, economist Maitet Diokno of the Center for Power Issues and Initiatives, Wilson Fortaleza of Partido ng Manggagawa (PM) and NAGKAISA, and Freedom from Debt Coalition (FDC) President Ricardo Reyes. source
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