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Manila Bulletin devider Business devider Trade & Industry devider ERC probes SPPC over alleged market abuse at Ilijan plant

ERC probes SPPC over alleged market abuse at Ilijan plant

Published Aug 5, 2025 03:55 pm
The Energy Regulatory Commission (ERC) has issued a show-cause order against South Premiere Power Corp. (SPPC) for alleged anti-competitive behavior related to the operation of the Ilijan Power Plant in June 2022.
In a statement on Tuesday, Aug. 5, the ERC said it acted on a recommendation from the Philippine Electricity Market Corp. (PEMC).
The PEMC report stated that the 1,200-megawatt (MW) Ilijan power plant was on “open breaker status”—disconnected from the grid and unable to deliver power—from June 5 to 25, 2022. This coincided with a 30 percent spike in market prices and the issuance of yellow and red alerts, signaling insufficient supply.
Outgoing ERC Chairperson Monalisa Dimalanta emphasized that this show-cause order serves as a reminder for energy stakeholders to abide by market regulations. “We must remind our stakeholders that power generation — while it is privatized and deregulated — remains a business imbued with public interest. Deregulation does not equate to freedom from rules,” she said.
The ERC has directed SPPC to submit a verified explanation within 15 days on why it should not be penalized for potential violations of Section 46 of the Electric Power Industry Reform Act (EPIRA). The law authorizes the ERC to impose fines of up to ₱50 million on entities found guilty of anti-competitive behavior.
The ERC also ordered PEMC to explain its handling of the incident. The ERC noted that while PEMC had initially informed it of potential market abuse by SPPC in 2022, the notice was later recalled "pending finalization." The ERC said it made consistent efforts to obtain a finalized report from September 2022 to April 2024, but PEMC only submitted the resolution in May 2024. The submitted resolution, dated August 11, 2022, had recommended that the ERC investigate SPPC for the alleged behavior.

Related Tags

Energy Regulatory Commission (ERC) South Premiere Power Corp. (SPPC) Ilijan Power Plant
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