ERC, PCC team up in probe of anti-competitive gencos

MANILA, Philippines – The Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC) have teamed up to investigate alleged anti-competitive practices of generation companies (gencos) in light of the recent power shortage in Luzon.

ERC chairman and CEO Jose Vicente B. Salazar said both agencies would formalize the partnership soon to define specific roles in the investigation.

“The ERC will work hand in hand with the PCC to determine whether there was indeed market power abuse or anti-competitive or discriminatory acts committed by some generation companies or gencos during the recent forced outages,” he said.

Under the Electric Power Industry Reform Act (EPIRA) of 2001, the ERC is mandated to monitor and penalize any act that constitutes market power abuse and/or anti-competitive or discriminatory behavior by any electric power industry participant.

Meanwhile, the Philippine Competition Act (PCA) of 2015 mandates the PCC to implement and enforce the national competition policy in order to ensure the promotion and protection of the competitive market by prohibiting anti-competitive agreements, abuse of dominant position, and anti-competitive mergers and acquisitions.

“Having the PCC as an ally of the ERC will facilitate the investigation and adjudication of alleged collusion among gencos. We will champion and work for the benefit of Filipino consumers whose best interests we are mandated to promote and safeguard,” Salazar said.

From July 25 to 29, the National Grid Corp. of the Philippines (NGCP) raised a series of yellow and red alerts in the Luzon grid after nine power plants went on scheduled and unscheduled outage.

A yellow alert status means contingency reserves are below the minimum level set by the regulator but does not necessarily lead to power outages. The power reserve should be equivalent to the largest unit of a running power plant, or in this case, the 647-MW unit of Sual power plant.