Solons sue energy regulators

Conspiracy with power-generating companies eyed

Manila Standard Today
By Rio N. Araja | Nov. 12, 2014 at 12:01am

BAYAN Muna party-list Reps. Neri Javier Colmenares and Carlos Isagani Zarate on Tuesday filed graft charges against Energy Regulatory Commission head Zenaida Ducut before the Office of the Ombudsman for failure to submit a report on the energy price hike following an alleged conspiracy with power firms.

Also sued were Commissioners Alfredo Non, Gloria Victoria Taruc and Jose Patricia Asirit.

Colmenares and Zarate said the executives violated the Anti-Graft and Corrupt Practices Act, the Code of Conduct and thical Standards for Public Officials and Employees, and their oversight functions underthe Electric Power Industry Reform Act.

The complaint noted that the ERC had no report on the l electricity price increase that began on Dec. 26, 2013 after an investigation.

“Respondents are guilty of wantonly and deliberately neglecting or refusing, after repeated demands by the people and after repeated commitments (by them) to publish the result of the ERC investigation on the reported collusion, within a reasonable time, for the purpose of giving undue advantage in favor of the interested parties,” the complaint read.

In December 2013, ERC allowed Manila Electric Company (Meralco) to increase rates by P4.15/kWh in three tranches from December 2013 to March 2014 on the back of higher generation costs incurred from buying higher-priced electricity at the Wholesale Electricity Spot Market (WESM) in November.

Colmenares said the executives promised to publish the investigation report on the alleged collusion of the power firms during Malampaya shutdown in November 2013.

The release was set for Jan. 6, 2014, but reset to March and Oct. 25.

“Seven months (from the ERC March 3, 2014 Order) is certainly and unjustifiably long time to ‘investigate’ the identity of those that withheld their capacity since these are of record even before March 3, 2014,” Colmenares said.

The report’s immediate release could safeguard the public from being “victimized by unscrupulous energy players” amid a looming power crisis in the summer months of 2015, he said.

“In fact, [the report] is crucial in the decision whether or not to grant emergency powers to the President.” source