ERC said the increase in price of electricity was the result of the refusal of certain power plants to offer capacity in the WESM. It said the generation companies’ violation of the WESM “must-offer rule” contributed to the tightness in supply. The commission also said the market was still dominated by only a few players or group of companies despite the government’s efforts to privatize its generation and transmission assets. Such a high concentration in the market, it said, may have negatively affected electricity rates. Assistant Justice Secretary Geronimo Sy, Office for Competition (OFC) chief, noted the ERC order did not clear Meralco, the generation companies and other market players for the controversial rate hike. “It is clear from the ERC directive that there is still a need to determine whether there was an abuse of market power or any other form of anticompetitive behavior in the electricity market. We must ensure that there is genuine competition among the firms so that they cannot individually or collectively dictate the price at the expense of end-users,” Sy said. Created in 2011, the OFC is the country’s first competition authority. The OFC is tasked with investigating and prosecuting cases involving violations of competition laws, as well as carry out market studies to guide industries and consumers. Read more: business.inquirer.net/166271/voiding-power-rate-hike-wont-stop-doj-probe#ixzz2xTMH5SpL Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
Posted on: Sun, 16 Mar 2014 07:51:23 +0000