MANILA, Philippines - The Energy Regulatory Commission (ERC) expects to conclude its investigation on the record increase in power rates that burdened electricity consumers in December 2013.
“The (ERC’s) investigation unit expects to release its findings by the end of October,” said ERC executive director Saturnino Juan.
He said the report would likely determine if there is collusion behind the rate spike and who should be held liable.
“It will determine the individual culpability, if there is any,” Juan said.
Those found liable of pushing prices up at the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity, during the November 2013 supply month would be slapped with monetary fines.
“There may also be criminal liability,” he noted.
He assured that whoever would be found liable, if there is any, would be given due process.
“They will be given the opportunity to respond. They will be given due process,” Juan said.
The Supreme Court, which issued a temporary restraining order on the December 2013 rates, has also yet to issue its decision on the matter.
In December 2013, the generation charge of Manila Electric Co. (Meralco) rose to P9.10 per kilowatt-hour in December 2013 and to P10.23 per kwh in January 2014.
However, because of the TRO issued by the High Court covering the December 2013 charge, Meralco had to peg the generation charge at P5.67 per kwh for both months.
The ERC, in a March 3 order following its preliminary investigation on the matter, said there was market failure at the WESM because some participants did not offer their full capacities, thereby affecting supply and pushing prices higher during the said supply months.
Based on the preliminary report of the investigation unit, regulated prices at the WESM for the November 2013 supply month should be P6.37 per kwh from the average P22 to 25 per kwh or a reduction of 71 percent and P6.11 per kwh for the December 2013 supply month from the average rate of P22 to 25 per kwh.