wiretaps in aid of effective electricity spot market regulation

A funny thing happened on the way to a competitive electricity market in the Philippines.

Let me start again. A funny thing happened when the electricity regulator was investigating anti-competitive behavior of the state-owned utility. The regulator said there was no prima facie case even after the market operator furnished them with affidavits admitting such behavior. This is one for the books, but not surprisingly because the country lacks a history of anti-trust litigation.

Let me start again. In September last year, the Philippine Electricity Marketing Corporation (PEMC) lodged a case with the ERC accusing the PSALM of market manipulation. The investigator of the ERC did not even have to call Jack Bauer of CTU. The affidavits of the PSALM agents are clear that they bid to get a desired price.

Then the ERC dismissed the case for lack of prima facie evidence.

It seems like the ERC was looking for legally wiretapped conversations which could have gone this way.

Hey Juan, at the peak demand, we should tweak our bids this way and that.

Unfortunately for consumers, ERC was not forward-looking enough to install bugging devices in the rooms of PSALM and the ERC or NPC. What a pity.

So the spot market celebrated its first anniversary in the first week of August without fanfare because PSALM was demanding a to collect P9 billion, the difference between spot rates and administered prices imposed by PEMC for two months last year.

If you read the ERC decision you'll know that the investigator didn't need to call Jack Bauer of CTU because the PSALM affidavits were quite candid and in themselves incriminatory.