The Taipei High Administrative Court has thwarted the Fair Trade Commission’s (FTC) decision to levy a highest ever NT$6.32 billion ($212 million) fine on nine independent power producers (IPPs), three of which were represented by Formosa Transnational Attorneys at Law (FT).

Last March, the FTC had levied an unprecedented high fine on nine IPPs for collusion after acting collectively to refuse to renegotiate the terms of power purchase agreements with the state-run Taipower Company (TaiPower).

The Taipei High Administrative Court ruled in favour of the nine independent power producers in late October, citing that the relationship between TaiPower and IPPs is contractual, so the terms of the contract are not required to conform to market conventions. Additionally, the price is fixed in the Power Purchase Agreements, and IPPs are unable to change the price of the power generated.

Moreover, the court found that each IPP disagrees with Taipower’s PPA agreement for different reasons, and therefore, the firms could not be accused of collusion.

The latest defeat in court is FTC’s third defeat this year after two other unfavourable rulings by courts on alleged price manipulation collusion. FTC announced it would continue to appeal the case to the Taiwan High Court upon receiving the judgment.

“Setting aside the possibility of abolishing the judgment, in order to protect the freedom of contract from the improper intervention of FTC, FTC should reconsider filing an appeal,” said Jackson Shuai-Sheng Huang, the partner who led FT’s litigation team representing the three IPPs.