PCC, DOE to promote competition, coordinate investigations in power sector

The Philippine Competition Commission (PCC) and the Department of Energy (DOE) on Tuesday signed a memorandum of agreement (MOA) to promote market competition and coordinate investigations in the power sector.

“The PCC and the DOE share a common vision of a more robust competition landscape in the power industry. With the Energy department having the technical assets and ensuring proper functioning of the energy sector, we are confident this complementation of efforts with PCC’s own investigative capacity will lead to a stronger push for competition enforcement,” PCC Chair Arsenio Balisacan said in a statement.

Collaborative mechanisms will allow PCC and DOE to count on information sharing, investigation support, technical audits, joint task forces, and continued capacity-building and consultations.

The agreement paves the way for the creation of a technical working group to coordinate investigation into alleged collusions or abuses of dominance in the energy sector, according to the PCC.

In April, the PCC said it will look into allegations of possible collusion or abuse of dominance of certain power generators following simultaneous shutdowns that may have caused an artificial supply shortage and consequently a hike in electricity prices.
The DOE, meanwhile, is mandated to implement policies ensuring reliability, quality and security of supply of electric power.

The PCC, as the country’s competition authority, is mandated to prohibit anticompetitive agreements in all sectors of the economy, and impose fines and penalties on violators.

The PCC also warned power generation companies from engaging in anticompetitive or collusive behavior which is punishable by the Competition Law with fines of up to P250 million, and imprisonment of responsible officers of up to seven years.

“Ensuring consumers are provided adequate supply of electricity on fair terms and prices, while allowing market players of all sizes to operate on a level playing field is at the center of our partnership,” Balisacan said. —VDS, GMA News