Daily TribuneI am confident that the task force would work to resolve anti-competitive issues relating to the industry. I am hoping that the collaboration itself would be a deterrent of anti-competitive practices and in the process, help establish market dynamics that would protect the interest of our consumer.
The Senate committee on energy is hoping to finally end anti-competitive practices in the power sector with the creation of a special joint task force between the Energy Regulatory Commission, or ERC, and the Philippine Competition Commission, or PCC.
Committee vice chairman Senator Sherwin Gatchalian said on Friday that the tie-up should establish market dynamics that would protect the interest of consumers, who are usually burdened with pass-on charges.
“I am confident that the task force would work to resolve anti-competitive issues relating to the industry. I am hoping that the collaboration itself would be a deterrent of anti-competitive practices and in the process, help establish market dynamics that would protect the interest of our consumers,” Gatchalian said.
The Electric Power Industry Reform Act of 2001, or EPIRA, passed during the time of former President Gloria Macapagal Arroyo, mandates ERC and PCC to promote competition, encourage market development, ensure consumer choice, and penalize abuse of market power in the restructured electricity industry.
Fostering level field
The law also promotes competition by creating a level playing field, among others, in the competitive retail electricity market.
Despite ERC’s efforts, it has acknowledged the challenges in tackling anti-competitive issues prevalent in the electricity industry. These issues include the trading of generated capacities among industry players in the Wholesale Electricity Spot Market.
“Policies that promote competition are there for a good reason and that is to prevent anti-competitive practices that often result in higher costs to consumers and additional costs incurred by other players,” Gatchalian explained.
