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By Euan Paulo C. Añonuevo Reporter
Electricity rates are expected to
rise by as much as P6 per kilowatt-hour after the Energy Regulatory
Commission (ERC) ordered the electricity spot market’s operator to
pay the Power Sector Assets and Liabilities Management Corp. (PSALM)
P9 billion for the price of electricity that was sold in September
and October 2006.
The PSALM had demanded the amount
from the Philippine Electricity Market Corp. (PEMC), which operates
the Wholesale Electricity Spot Markets (WESM), after PSALM was
cleared of price-fixing charges by the ERC.
In the House of Representatives,
an inquiry into alleged price manipulation in the WESM loomed.
Rep. Juan Miguel “Mikey”
Arroyo of Pampanga, chairman of the Committee on Energy said
electricity consumers must not bear the brunt of “selfish”
interests of power officials.
The ERC directed the PEMC to
reimpose spot prices during the two months in 2006.
PEMC said the ERC decision would
impact on the customers of the Manila Electric Co. (Meralco), which
gets part of its power supply from WESM.
Meralco customers will have to
pay P6.23 more per kWh, while customers of other distribution
utilities in the Luzon grid will pay an average increase of P2.60
per kWh.
PEMC had cut settlement prices to
P3.22 per kWh from P4.85 per kWh for September; and to P3.09 per kWh
from P6.77 per kWh for October after its independent Market
Surveillance Committee found that PSALM manipulated prices in the
spot market.
PSALM said the P9 billion
represents its traded volume during the two months.
In its decision to reimpose the
original prices, the ERC said the decision of PEMC to adjust the
prices was “carried out beyond the scope of its authority and in
violation of the Epira [Electric Power Industry Reform Act] and WESM
Rules.”
“While its action may be
appealing to the public, for such action meant lower prices, the
Commission cannot simply allow any aberration in the market by
condoning the PEM Board’s exercise of unbridled powers over the
results of the operation of the market,” the ERC said.
After conducting its own
investigation, the ERC cleared PSALM of price-rigging charges but
reprimanded the National Power Corporation (Napocor) for trying to
influence spot market prices.
Anticipating the electric rate
increase, the ERC has ordered PEMC to adjust its billing and
settlement processes to soften the impact of the decision on WESM
members.
Power rates are expected to rise
further next year after the ERC approved a P0.08 per kWh increase in
the distribution charge of Meralco in a separate decision. The
increase is due for implementation in February 2008.
Congressman Arroyo, the
President’s son, said his panel would look into the allegations of
price manipulation in the spot market, as revealed in a privileged
speech by an opposition congressman last week.
--With Maricel V. Cruz
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