DOJ team given more time to complete Meralco probe

MANILA, Philippines - Justice Secretary Leila de Lima has given investigators in her department more time to complete a fact-finding probe on alleged collusion behind Manila Electric Co.’s record-high electricity rate hike of P4.15 per kilowatt-hour.

De Lima revealed yesterday that the DOJ’s office for competition (OFC) is not yet ready with a report more than a month after it started its probe.

The team was earlier given until end of January or today to submit its findings.

“They need extension because the issues being investigated are complex, highly technical and time-consuming,” she explained.

She did not give a deadline to the OFC probers to complete their task.

De Lima said the team is still gathering information from various sources and is now checking on simultaneous shutdowns of power plants.

“They are gathering documents and data from relevant agencies including ERC (Energy Regulatory Commission) and DOE (Department of Energy), transcripts of the Senate hearings and also comments from industry players,” she said.

The DOJ chief said the probe would also cover alleged manipulation of prices in the Wholesale Electricity Spot Market (WESM) that led to the rate hike.

Asked if there are already initial findings, she replied: “I cannot be disclosing those.”

The Supreme Court earlier stopped the rate hike, but De Lima said the DOJ probe would proceed, as the temporary restraining order issued by the court does not cover it.

The OFC is specifically tasked to look for possible violations of anti-trust laws.

President Aquino created the OFC in June 2011 to ensure that there will be no monopolies and cartels in domestic and international trade.

It is tasked to investigate all cases involving violations of competition laws and prosecute violators to prevent, restrain and punish monopolies, cartels and combinations in restraint of trade.

It is also mandated to enforce competition policies and laws to protect consumers from abusive, fraudulent or harmful corrupt business practices, supervise competition in markets by ensuring that prohibitions and requirements of competition laws are adhered to, and to this end, call on other government agencies and/or entities for submission of reports and provision for assistance, and monitor and implement measures to promote transparency and accountability in markets. 

Skyrocketing electricity prices the past two months may come to an end this February as Meralco expressed hopes that this month’s generation charge would fall below P5.67 per kilowatt-hour.

Meralco president Oscar Reyes said the company has yet to compute the February generation charge but assured the public that if this is lower than P5.67 per kwh, consumers would benefit.

“We’re hopeful that it will be lower and we will pass it on to consumers,” Reyes said at the sidelines of the Joint Congressional Power Commission meeting at the Senate yesterday.

Energy Secretary Carlos Jericho Petilla also said that electricity rates are not expected to spike in February given low demand – because of low temperature for several weeks now – and because the supply situation has normalized. – With Jess Diaz, Christina Mendez, Paolo Romero, Iris Gonzales