Senate President Win Gatchalian is pushing to prohibit cross-ownership between generation companies (GenCos) and distribution utilities (DUs) to create a more competitive environment in the power sector and lower the cost of electricity.
“Cross-ownership between GenCos and DUs could result in conflict of interest potentially leading to anti-competitive behavior that could, in turn, inflate prices to the detriment of consumers,” said Gatchalian, as he filed Senate Bill No. 1091 seeking to amend Republic Act No. 9136, also known as the Electric Power Industry Reform Act (EPIRA) of 2001.
This bill prohibits any GenCo or its subsidiary or affiliate from holding an interest in any DU, and vice versa. It also prohibits any officer of a GenCo or its subsidiary or affiliate from serving as an officer or director of a DU or its affiliate, and vice versa, Gatchalian said.
Without a prohibition on cross-ownership, it is difficult to determine whether a DU, when contracting power supply, is making a decision that is in the best interest of consumers, Gatchalian explained.
Gatchalian: Ipagbawal ang GenCo -DU ‘cross ownership’ Kontra Mataas na Singil ng Kuryente
Isinusulong ni Senate President Win Gatchalian ang pagbabawal sa cross-ownership sa pagitan ng mga generation company (GenCo) at distribution utility (DU) upang magkaroon ng competitive environment sa sektor ng kuryente at mapababa ang halaga ng elektrisidad.
“Ang cross-ownership sa pagitan ng GenCo at DU ay maaaring magdulot ng conflict of interest na posibleng humantong sa mga anti-competitive behavior na pwedeng magpataas ng presyo ng kuryente,” ayon kay Gatchalian, kasabay ng paghahain niya ng Senate Bill No. 1091 na naglalayong amyendahan ang Republic Act No. 9136 o ang Electric Power Industry Reform Act (EPIRA) of 2001.
Sa ilalim ng panukalang batas, ipagbabawal sa anumang GenCo, kabilang ang mga subsidiary o affiliate nito, ang pagkakaroon ng interes o pagmamay-ari sa anumang DU, at gayundin sa mga DU na magkaroon ng interes sa mga GenCo. Ipinagbabawal din nito sa sinumang opisyal ng GenCo, o ng mga subsidiary o affiliate nito, na magsilbing opisyal o direktor ng isang DU o ng affiliate nito at ganoon din sa kabilang panig, sabi ni Gatchalian.
Aniya pa, kung walang pagbabawal sa cross-ownership, mahirap matiyak kung ang isang DU ay tunay na kumikilos para sa kapakanan ng mga konsyumer kapag pumipili o kumokontrata ito ng suplay ng kuryente.
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Photo by Mark Cayabyab / OS WIN GATCHALIAN
