New task force to crackdown unfair power practices

To address recent controversies in the local power sector, including several canceled supply deals and a multi-billion-peso power blackout, among others, a special monitoring group will be established to safeguard consumer interests.

The Energy Regulatory Commission, or ERC, on Friday said it has teamed up with the Philippine Competition Commission, or PCC, to launch a joint task force to monitor and investigate allegations of anti-competitive practices in the power sector.

The power regulator pointed out that the joint fact-finding inquiries aim to uncover anti-competitive conducts that harm consumer welfare.

“The ERC firmly believes that to protect the consumers, we cannot afford to go at this alone,” ERC Chairperson and CEO Monalisa C. Dimalanta said.

“The broader expertise of the PCC on reviewing arrangements and behavior with a competition lens complements the energy industry focus of the ERC. This synergy allows our respective agencies to better fulfill our mandates and serve the Filipino public,” she added.

The task force's efforts were built upon a 2019 Memorandum of Agreement between the two regulators, which was established in response to concerns regarding power outages and subsequent increases in electricity prices.

To better facilitate the task force’s mandates, the ERC has provided the PCC with key industry data and insights.

As for PCC Chairperson Michael G. Aguinaldo, the latest development underscored the PCC’s commitment to holding market players accountable to their customers.

“This renewed collaboration between the ERC and the PCC marks a significant milestone towards fostering a more competitive power industry, drawing on our combined expertise and investigative resources,” Aguinaldo said.

“The PCC, responsible for enforcing the Philippine Competition Act, looks forward to a more efficient and expeditious investigation into possible violations of the law for the benefit of consumers,” he added.

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.

The law also promotes competition by creating a level playing field, among others, in the competitive retail electricity market.