State-run Power Sector Assets and Liabilities Management Corp. said it plans to appeal with the Energy Regulatory Commission or the court the P89-million penalty imposed by power market operator Philippine Electricity Market Corp.
PEMC, which operates the Wholesale Electricity Spot Market, the trading platform of electricity, imposed the fine on PSALM for alleged violation of the “must-offer” rule involving the capacity of Casecnan hydroelectric power plant and Malaya thermal plant.
“On the violations on the ‘must offer’ rule of Malaya and Casecnan for December 2013, due to the denial of our appeal and imposition of charges, we are considering our options to elevate the issue to either the ERC or the proper court since we are questioning the jurisdiction of PEMC on this,” PSALM president Emmanuel Ledesma Jr. said.
Ledesma said the fine consisted of P78 million for the Malampaya plant and P11 million for Casenan facility.
The PEMC board confirmed the fines against PSALM, which allegedly did not dispatch the whole capacity of the 140-megawatt Casecnan hydro power plant in Nueva Ecija and the 650-MW Malaya thermal power plant in Rizal in the late part of 2013.
Ledesma said the PSALM legal department was studying the specifics of the arguments to be raised before the ERC or the court. “In general, case might involve nullification of ERC rules allowing PEMC to investigate even if ERC is already investigating,” he said.
PEMC also imposed penalties on Panasia Energy Inc.’s 620-MW Limay power plant in Bataan for violating the “must-offer” rule but did not specify the fine. It earlier slapped a P239-million fine against Therma Mobile Inc. owned by Aboitiz Group for the same violation.
PEMC cited a total 10 companies for violating the “must-offer” rule.
PEMC president Melinda Ocampo said the fines would be used for the conduct of seminars and training but there was an ongoing review on the use of the fines, which had exceeded P300 million.
Other companies found in violation of the WESM rules but were not issued penalties were CIP II Power Corp. owned by Trans-Asia Oil and Energy Development Corp., Trans-Asia Power Generation Corp., Udenna Management and Resources Corp., Strategic Power Development Corp., SEM-Calaca Power Corp. and AP Renewables Inc. of Aboitiz Power Corp.
Energy Secretary Carlos Jericho Petilla, the chairman of PEMC board, defended the move of PEMC to penalize PSALM for violating the “must-offer” rule of the WESM.
“These findings are as a result of in depth findings bearing in mind that all involved were given a chance to explain their actions. The findings were based on the work of an independent committee tasked to handle this job and their findings were affirmed by the board,” Petilla said.