Metro Manila (CNN Philippines, May 16) — Energy companies should pay a higher fine for violating the Electric Power Industry Reform Act, the Department of Energy (DOE) said during a hearing on Tuesday at the House of Representatives.
The DOE told the House Committee on Energy that the Electric Power Industry Reform Act of 2001 should be amended to increase the maximum fine now set at ₱50 million to ₱500 million for industry players who engage in the abuse of market power, cartelization and anti-competitive or discriminatory behavior.
Violators may also face imprisonment of up to 12 years under the proposal, an increase from the maximum six years jail time under the current law.
The electric power industry will also be tasked to report its monthly unbundled rates, including the cost of each generation supply.
Meanwhile, the Energy Regulatory Commission (ERC) will be authorized to impose the penalty, upon the recommendation of the Philippine Competition Commission.
However, the proposed amendment also states that an “electric cooperative who is unable to fulfill their obligation to its creditors due to insolvency or bankruptcy” may apply for solutions under the Financial Rehabilitation and Insolvency Act of 2010.
