Murang Kuryente on Wednesday responded positively to the agreement between the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) to cooperatively review anti-competitive practices in the energy sector but lamented the exclusion of a consumer feedback mechanism in the process.
The Memorandum of Agreement (MOA) was signed on Monday, complementing an earlier agreement between the PCC and the Department of Energy (DOE).
“We welcome the cooperation between the PCC, DOE, and ERC, and hope that it would lead to less collusion among electricity companies, but we would feel better if there is also a representative from consumers. After all, compliance with the laws against anti-competitive practices do not necessarily translate to better service and lower prices for consumers,” said Murang Kuryente spokesperson Gerry Arances.
Murang Kuryente has long decried the apparent collusion between GenCos (generation companies) and DUs (distribution utilities), which reached its peak in the “power crisis” during the summer.
Arances said, “The first test of this agreement is the competitive selection process (CSP) undertaken by DUs, with Meralco’s CSP the first in line.”
The Manila Electric Company is holding a CSP for three power contracts with a total capacity of 2,900 MW (megawatts), and announced that 22 companies have already tendered offers, but without disclosing which companies are involved.
Arances also reminded the public that the PCC already launched an investigation into the “power crisis” but has yet to produce results.
“Another test of this agreement is the removal of any impediment into the investigation of possible collusion or cartel-like behavior among energy companies during the ‘power crisis’ this summer,” said Arances.
The consumer advocacy group however stood firm on its stance that the only way to reform the power sector is to review the Electric Power Industry Act, or EPIRA.
“Even assuming that the three-way partnership between the DOE, ERC, and PCC works as intended, it can never compensate for the power that EPIRA gave to the private sector to set policy and its own prices, to the detriment of consumers,” said Arances. (PR)
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