TO                    :   All Power Generation Companies

SUBJECT        :    Advisory on Ensuring Adequate and Reliable Electric Power Supply from All Power Plants in the Country

"Electric Power Industry Reform Act of 2001" (EPIRA) intends to ensure reliability, quality and security of supply of electric power.  The Department of Energy (DOE) is the lead agency mandated to guarantee achievement of this objective.

In line with this, EPIRA strictly prohibits anti-competitive behavior among the players in the electric power industry. Thus, Section 45 of said law states:

Cross Ownership, Market Power Abuse and Anti-Competitive Behavior.

-- No participant in the electricity industry or any other person may engage in any anti-competitive behavior including, but not limited to, cross-subsidization, price or market manipulation, or other unfair trade practices detrimental to the encouragement and protection of contestable markets.

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Furthermore, Section 1, Rule 11 of EPIRA lmplementing Rules and Regulations (IRR)likewise prohibits electric power industry participants from engaging in anti-competitive behavior, to wit:

General Principle. No Electric Power lndustry Participant or any other Person may engage in any anti-competitive behavior including, but not limited to, cross-subsidization, price or market manipulation, false or deceptive marketing, or other unfair trade practices detrimental to the encouragement and protection of Contestable Markets or the WESM.