Published February 28, 2017, 10:00
PM By Myrna
M. Velasco
Power generation companies (GenCos)
have been spooked and are seriously alarmed over implications on future
investments of the recent temporary restraining order (TRO) from the Supreme
Court that effectively stopped the enforcement of retail competition and open
access (RCOA) in the industry.
Having an indefinite tenor, the high
court’s restraining order symbolically spun the power sector players in the
whirlpool once again, with them indicating that the short- to long-term impact
could be halt in capital flow as some investors had viewed the RCOA phase of
the restructured electricity sector as a form of market incentive.
It is also seen detrimental to the
end-users, because recent ‘market war’ in the power sector already thrived on
“offering the lowest of the low prices versus competitors” just to corner
contestable customers for a contract. Contestable customers belong to the
segment of end-users who can already exercise freedom of choice on their power
contracting with preferred retail electricity suppliers (RES) licensed by
regulators.
The Philippine Independent Power
Producers Association (PIPPA), stressed that “it notes with concern, the SC TRO
indefinitely enjoining the implementation and enforcement of the regulations
issued by the Department of Energy (DOE) and Energy Regulatory Commission (ERC)
on RCOA.”
The retail competition state for the
power industry was first instituted on “voluntary basis” in 2013, and could
have been enforced mandatory starting February 26 this year – but then the
restraining order from the high court came.
Heaps of contestable customers
effectively exercised ‘choice’ as could be gleaned on the volume of power
supply agreements already signed prior to the originally set deadline of
February 26. That was until the issuance of the SC verdict on the petition
filed by the Philippine Chamber of Commerce and Industry (PCCI), San Beda
College Alabang, Inc., Ateneo de Manila University and Riverbank Development
Corporation.
The GenCos said “the recent TRO
issued by the Supreme Court has the effect of putting on hold aspects of the
RCOA, specifically the timeline for lowering of thresholds.”
PIPPA asserted it is in full support
of RCOA’s implementation. But at this time, the group of power producers can
only hope that “the issues before the Supreme Court will be resolved with
finality at the soonest possible time.”
As this developed, Bayan Muna
Chairman Neri Colmenares prodded the ERC “to investigate reports that Meralco
is pressuring its customers to rescind contracts with their suppliers in light
of the TRO.”
In response, ERC Chairman Jose
Vicente B. Salazar said “we have been closely monitoring the retail market for
any irregular or unscrupulous behavior by industry players following the recent
issuance of the TRO by the Supreme Court.”
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