Philippine Electricity Market Corp., operator of the Wholesale Electricity Spot Market, imposed a P234.9-million fine against Therma Mobile Inc., a unit of Aboitiz Power Corp., for alleged violations of the ‘must-run’ and ‘must offer’ rules when it withheld capacity from its power barges.
Aboitiz Power said in a disclosure Wednesday the penalty imposed on Therma Mobile would have an adverse effect on the company’s financials.
“TMO is currently studying its legal options to protect its rights,” the company said.
The fine followed an investigation on Therma Mobile in the dispatch of power barges during the November and December 2013 supply period.
Power rates of Manila Electric Co. spiked during the November-to-December 2013 supply period by as much as P4.15 per kilowatt-hour due to the shutdown of the Malampaya natural gas production facility and other power plants.
Certain groups filed a case against Meralco’s price hike before the Supreme Court. The high court ordered the Energy Regulatory Commission to investigate anti-competitive behavior and abuse of market power allegedly committed by some WESM participants.
PEMC conducted the investigations under the “must run” and “must offer” rules of the WESM. The WESM serves as the trading floor of electricity in the Philippines.
PEMC initially found out that Therma Mobile withheld capacity during the period of under investigation.
The PEMC board on Jan. 30, 2015 imposed financial penalties of P234.9 million against Therma Mobile. The board said it would collect the penalties through the WESM settlement process.
Therma Mobile said it followed the rules and delivered all available capacity to customer Meralco, contrary to the recent findings of PEMC.
It said the power plant offered and delivered the entire available and dispatchable load to Meralco, during the power shortage in November and December 2013.
