‘Higher power rates won’t affect consumers’

The Department of Energy said the investigation into the alleged price manipulation in the wholesale electricity spot market (WESM) would be completed on Nov. 17. The DOE also assured the public that any price increase caused by the supposed manipulation would not be passed on to consumers.

Energy Undersecretary Melinda Ocampo said the board of the Philippine Electricity Market has already issued a resolution two weeks ago urging an investigation of the issue.

"So we want to assure the public that the government can protect the consumers," Ocampo said in an interview with Vice President Noli de Castro over dzMM.

Ocampo said WESM was established with a mechanism for transparency, thus any price manipulation scheme could be easily monitored.

"Every price movement can be seen at the WESM web site," she pointed out.

"So if there are suspicions that there is price manipulation, we can easily check," Ocampo said.

She explained any abrupt increase in the prices of electricity would automatically merit an investigation.

"In fact, the process is ongoing now and the alleged price manipulation is being investigated by an independent body," she said.

Ocampo said the WESM has self-correcting mechanism that would make any anomalous deals surface.

"And we just have to observe due process in making the investigation," she added.

The energy official said the "due process" in the investigation would last for 45 days.

Ocampo said they have already started the investigation within the 45 day period which will be completed on Nov. 17.

She assured the public that any price adjustment resulting from any price manipulation transaction would not be felt until the investigation is completed.

Ocampo stressed any price increase would have to be presented before a public hearing as required by the Supreme Court in its rulings over the issue.

She said the public could still expect to have lower electricity bills under the WESM.

"During the first month, there was a reduction of 80 centavos (per kilowatt hour). If there is manipulation, you can see that the government is ready to protect the consumers," Ocampo said.

Albay Rep. Joey Salceda had warned power rates would increase in the coming months due to the alleged price manipulation in the WESM.

President Arroyo ordered the energy department to investigate the issue, stressing any price manipulation would be unacceptable.

The WESM is a trading or bidding system where power companies can purchase electricity from different power generators offering the cheapest rates.