Business World Online
Posted on August 18, 2015 08:17:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
PROCEEDINGS against the 12 power companies ensnared in charges of anti-competitive behavior are expected to start before the end of August, though a resolution beyond 2015 remains a possibility, a regulator said.
The start of hearings follows the completion of the probe conducted by the Investigation Unit (IU) of the Energy Regulatory Commission (ERC), which was takes with identifying the cause of record rate increases by Manila Electric Co. (Meralco) at the end of 2013.
ERC Commissioner Gloria Victoria C. Yap-Taruc said that the IU filed complaints against 11 generation companies and distributor Meralco before the ERC, which will hear the case en banc.
“The parties were provided the copies of the complaints. They were also given the opportunity to submit their respective answers,” Ms. Yap-Taruc told reporters on Monday night.
“Once we receive their answers, we will be having a pre-hearing conference. We envision that by the end of August, we will have the pre-hearing conference with all the respondents to ensure smooth flow of the proceedings,” she said at a briefing in Mandaluyong City.
She explained that the ERC wants to determine whether the case will be consolidated or will be tackled individually.
“We are going to discuss if the case will be heard in a consolidated fashion or taken individually because they all stemmed from the same set of facts,” Ms. Yap-Taruc said.
Also on tap is “the scheduling and timelines of hearings because that’s a lot of cases to manage and we can’t accommodate so many people,” said Ms. Yap-Taruc.
She added that it was not yet possible to say whether the case can be concluded within the year.
“We cannot say right now. We still have to see the actual flow of hearings,” Ms. Yap-Taruc said.
Jose Vicente P. Salazar, the newly appointed ERC chief, for his part assured that the ERC en banc will exercise “fairness, dedication and competence” during the hearings.
“I’m giving you assurance, not just for myself, but also the other commissioner members that if those three ingredients are there, then we’ll be able to arrive at a decision which will be acceptable to the consuming public and the industry players,” said Mr. Salazar.
The ERC-IU’s investigation showed that Meralco and the 11 generation companies committed “market abuse” during the November and December 2013 supply months.
The generators were identified as the Power Sector Assets and Liabilities Management Corp.; PANASIA Energy, Inc.; Therma Mobile, Inc.; 1590 Energy Corp.; CIP II Power Corp.; Trans-Asia Power Generation Corp.; AP Renewables, Inc.; Udenna Management and Resources Corp.; Strategic Power Development Corp.; GNPower Mariveles Coal Plant Ltd.; and SEM-Calaca Power Corp.
Such actions are believed to have caused the P4.15 per kilowatt-hour (/kWh) hike that was to have been collected in December 2013 and another P5.33/kWh that was to have been imposed in January last year until the Supreme Court stepped in.
ERC Executive Director Francis Saturnino C. Juan said in June that respondents to the case will have due process.
After the hearings, the ERC en banc will decide on the imposition of penalties, if warranted.
The range of possible fines, as provided under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, is P50,000 to P50 million.
The respondents, however, have yet to receive a copy of the complaint and the IU report as of press time yesterday.
The Energy department in February last year said that its own investigation showed that around 2,300 megawatts were not offered at the Wholesale Electricity Spot Market in violation of the must-offer rule.
This prompted the ERC in March 2014 to void the market prices for the period. It also ordered market operator Philippine Electricity Market Corp. (PEMC) to adopt regulated rates for the December 2013 and January 2014 billing periods.
High WESM prices have been blamed for the P4.15/kWh rate hike that Meralco sought.
The adjustment is currently subject to a Supreme Court-issued indefinite restraining order, which prevents PEMC from issuing a revised bill for Meralco’s December rate.
A P5.33/kWh increase was also sought for January billing period but Meralco slashed this to P0.45/kWh after PEMC revised WESM prices for the December supply month. The ERC has yet to rule on the revised petition.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc. -- a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. -- has interest in BusinessWorld through the Philippine Star Group, which it controls. source
No comments:
Post a Comment