The House committee on energy will start investigations this month into what has been described as a huge investment scam in the energy business.
The scam allegedly involves the Independent Electric Market Operator of the Philippines (IEMOP) which claims to have been spun off from the Philippine Electricity Market Corp. (PEMC), a non-stock, non-profit company incorporated in November 2003 to serve as interim governance arm of the wholesale electricity spot market (WESM).
A company with only P7,000 in paid-up capital according to its incorporation papers filed with the Securities and Exchange Commission, IEMOP has taken over from PEMC as operator of WESM in September 2018, four months after it was incorporated.
WESM was created by virtue of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001. It is where generators sell their excess capacities not covered by contracts and where customers buy additional capacities on top of their contracts.
Meanwhile, IEMOP runs the electricity market by among other things managing the registration of market participants, receiving generation offers, coming out with market prices and dispatch schedules of the generation plants, monitoring the day-to-day market trading, and handling billing, settlement and collections.
In a radio interview, party-list Rep. Jericho Nograles disclosed that IEMOP has since then been collecting around 86 centavos per kilowatt hour from what the consumers pay or more than P100 million per month.
Nograles said IEIMOP collects money without approval from the Energy Regulatory Commission (ERC) when it is a cardinal rule not to set rates or collect without ERC approval because it is a highly regulated industry.
Source: Investment scam | Philstar.com