13 generation firms face raps
Thirteen power plant companies, including those owned or led by big industry players, face allegations of market abuse before the Energy Regulatory Commission (ERC).
“The ERC expects the filing today or tomorrow of the corresponding complaints against those found by its investigatory unit to have committed acts constituting anti-competitive behavior or market abuse,” executive director Francis Saturnino C. Juan said in a phone interview.
The ERC Investigating Unit (IU) said in a report that 13 energy generation companies or power stations withheld energy capacity during a period of tight electricity supply in 2013. This contributed to a record spike in power rates in late 2013.
However, the IU report did not directly say whether there was collusion among the players.
State-led Power Sector Assets and Liabilities Management Corp. (PSALM) faces complaints for its 620-megawatt (MW) Malaya diesel power plant in Rizal and its 140-MW Casecnan hydroelectric power plant in Nueva Ecija.
AboitizPower Corp.’s two subsidiaries face raps as well. One is Therma Mobile Inc. (TMO), owner and operator of four power barges in Navotas City with a combined capacity of 234 MW, which allegedly withheld some capacity.
TMO has been fined P200 million by spot market operator Philippine Electricity Market Corp. (PEMC). Another is AP Renewables Inc. for its 330-MW Makban geothermal power plant in Laguna.
Trans-Asia Oil and Energy Development Corp.’s subsidiaries CIP II Power Corp. (21-MW diesel power plant in Bacnotan, La Union) and TransAsia Power Gen (52-MW diesel power plant in Norzagaray, Bulacan) are also expected to be among the respondents.
Strategic Power Development Corp. (SPDC), a wholly owned unit of SMC Global Power Corp., operates the 345-MW hydroelectric power facility in San Manuel, Pangasinan. It is among the companies said to have violated market rules.
The Manila Electric Co. is also among those facing complaints, as are GNPower Mariveles Coal Plant Ltd. (600-MW coal plant in Bataan) of GNPower Ltd. Co. and SEM-Calaca Power Corp. (600-MW coal plant in Batangas) of Semirara Mining and Power Corp.
For its part, Meralco said in a statement it had “acted strictly in accordance with the decision of the ERC approving the Power Supply Agreement with TMO.”
“The records will bear that Meralco complied with applicable market rules and did not engage in any anti-competitive behavior in its supply contract with TMO,” said William Pamintuan, Meralco’s head of legal department.
