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LKI 2020-018 Press Statement on Wesm prices

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LKI 2020-018 Press Statement- April 21, 2020


 Laban Konsyumer Inc. (LKI) President Vic Dimagiba elevated to the Philippine Competition Commission the 2019 electricity spot market investigation being a closed case despite 149 breaches of the Market operation. Spot market prices went up to Php 12.00 pkwh at that time.

Dimagiba informed that PEMC responded to the consumer group, clarifying and confirming that they have “not issued a Notice of Anti-Competitive Behavior (ACB) on the 147 investigation cases that PEMC concluded in 2019. As mentioned in our previous response, these cases pertain only to the breach of the WESM Rules “. 

But LKI believed otherwise, and that the breach of the WESM rules is a window to look if there is in fact anti-competitive behavior.

Dimagiba pointed out that PEMC tried to reason that it has not observed any indication of price manipulation during the same period, but that “PEMC pointed to ERC to give or direct PEMC express or implied consent to investigate, in case there is any indication of a price manipulation or anti-competitive behavior which may be found. In fact, of the 147 cases and 61,227 intervals, 4,865 intervals were found to be in breach of the Market Rules. This is reason enough for the investigation to be continued so as to ensure the proper analysis of the findings be done, and a proper resolution given to the issue.”

Dimagiba expressed concern that “this investigation has not been accomplished fully, and we at LKI hope that it can be continued to be studied on. PEMC has said that if ever there will be, they will inform the ERC of the possible commission of Anti-Competitive Behavior, in accordance with the existing Market Surveillance Compliance and Enforcement Market Manual and the PEMC-ERC Protocol.”

Under the Competition Law, the Philippine Competition Commission has the exclusive and primary mandate to investigate anti-competitive behavior of the industry.