Senator Sherwin Gatchalian said he is hopeful that the joint task force between the Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC) will addess the perennial problems hounding the country’s power sector.

“I am confident that the task force would work to resolve anti-competitive issues relating to the industry,” Gatchalian said, noting that the PCC is created to investigate allegations of anti-competitive practices.

“I am hoping that the collaboration itself would be a deterrent of anti-competitive practices and in the process, help establish market dynamics that would protect the interest of our consumers,” he further said.

The vice chairman of the Senate Committee on Energy noted that the Electric Power Industry Reform Act (EPIRA) regulates competition in the power industry, and prohibits participants in the electricity industry from engaging in any anti-competitive behavior including, but not limited to, cross-subsidization, price, or market manipulation, and imposes limits on ownership and control by related companies, of installed generating capacity.

But even the ERC has admitted difficulty in addressing anti-competitive issues hounding the power industry such as those involving industry players trading their generated capacities in the Wholesale Electricity Spot Market (WESM).

Gatchalian said policies that promote competition are there for a good reason and that is to prevent anti-competitive practices.

Monopolies and other anti-competitive schemes, the lawmaker noted, often result in higher costs to consumers and additional costs incurred by other players. 

“Inaasahan natin na ang pagtutulungan ng ERC at PCC ay magpapalakas sa kakayahan ng gobyerno na suriin ang mga kahinahinalang gawain sa industriya at ibayong maipatupad ang mga polisiya hinggil sa patas na kompetisyon para sa kapakinabangan ng mga konsyumer (We hope that the collaboration between the ERC and the PCC will strengthen the government's ability to investigate dubious practices in the industry and further implement policies regarding fair competition for the benefit of consumers),” the senator said.