House Committee on Ways and Means Chairman Joey Salceda estimated P1.2-trillion worth of "excesses of the oligopolistic" structure of the power industry as the primary factor to blame for the never-ending torture of high electricity rates on the Filipino consumers; and this is also a key element crippling the targeted influx of foreign direct investments (FDIs) into the country.

“With all the excesses of these oligopolistic players, I think ERC (Energy Regulatory Commission) can very well peripherally see between a competitive price or let’s say an international price, so we can sum up all the excesses in the WESM (Wholesale Electricity Spot Market); plus all the stranded costs in coal, we’ll come up probably with P1.2 trillion,” the lawmaker has noted during a budget briefing for the energy sector at the House Committee on Appropriations.

Based on numbers being crunched, Salceda indicated that such excesses of ‘very limited players’ in the power sector, may go beyond P1.0 trillion – although he has not fully elaborated on the specific items contributing to such profligacy of the industry participants.

Given the failure of reforms under the Electric Power Industry Reform Act (EPIRA), Salceda forthrightly told ERC Chairperson Monalisa C. Dimalanta that it’s time for the regulating agency to confront these very few companies on their rapacity when it comes to gobbling up opportunities in the electric power industry.

“Chair Dimalanta, my only request to you: to all these conglomerates, tell them enough! Can you please always decide on the side of the consumers,” Salceda stressed.

The solon had not given details on the alleged transgressions of the industry players, but it has been widely known that allegations of collusion and market gaming in the WESM had been repeatedly investigated in Congress -- but all these efforts just turned into futility because the power companies can always run to the courts to secure restraining orders.

With the mandate of EPIRA on lowering power rates already apparent as a defeated goal, Salceda is proposing that there might be a need to set up Power Sector Assets and Liabilities Management Corporation (PSALM)-2, to administer the supposed P1.2 trillion excesses of the existing players by resorting to some form of financial restructuring so there will be a chance for the country to at least bring down power costs to the level of P7.00 per kilowatt hour (kWh); or at least closer to the cheaper electricity tariffs of neighbors within the Southeast Asian region.

He further stated “it’s a crazy idea but all I’m saying is: I think DOE (Department of Energy) and ERC, please teach us: how can we make the reforms to bring the FDIs we want –there was never a talk on how to make power costs in the Philippines lower and competitive.”

Salceda qualified that if the country’s predicament over expensive electricity rates can’t be addressed, any effort of the government to entice FDIs will just turn out pointless.

On the queries of Party List Representative France Castro if it is already time for EPIRA to be dumped because it had been ineffective in bringing down power rates and in improving services to consumers – especially in the provinces that are still continuously tormented with brownouts and have been paying exorbitant rates of P16 to P21 per kWh, ERC Chairperson Monalisa Dimalanta qualified that the more prudent step that must be taken is to review the law.

“Scrapping it (EPIRA) might not be the way, but the law needs to be reviewed, because it’s already an old law – and we also need to make it attuned to the investment conditions today – including the evolving energy systems,” the ERC chief said.

Additionally, DOE Director Mario C. Marasigan noted that the department is now re-assessing specific provisions of the power industry reform law that shall be proposed for review or amendments.