MANILA, Philippines—Barely a year after it issued a market cap for 2010, the Energy Regulatory Commission has again set limits on the power capacity a single company or group can generate, to protect electricity consumers from monopoly and market power abuse.
In a resolution, the ERC explained the need to adjust the limits due to changes in the installed generating capacity per grid and the decrease in the national grid’s total capacity.
Usually, the market cap is adjusted every year on March 15.
The ERC revised the limits to reflect a decrease in the installed generating capacity in the national grid to 14,593.5 megawatts for the second half of 2010 from the 14,712.6 MW set in March this year.
The bulk of the capacity is in the Luzon grid with 10,839 MW, down from the 11,188.5 MW reported in March this year. The capacity in the Visayas, however, increased to 1,954.8 MW for the second half of the year from 1,715.3 MW as of last March. In Mindanao, capacity dipped to 1,799.8 MW from 1,808.81 MW.
Under the Electric Power Industry Reform Act, a company or group of related companies is barred from owning, operating or controlling more than 30 percent of the installed generating capacity of a grid and/or 25 percent of the country’s total.
As such, power generation companies are not allowed to own facilities with installed capacities exceeding 3,251.7 MW in Luzon (from 3,356.5 MW as of last March 2010); 586.4 MW in Visayas (from 514.6 MW); and 539.9 MW for Mindanao (from 542.6 MW).
For the national grid, the new market share limit was set at a lower 3,648.4 MW from 3,678.1 MW.
The caps on ownership were meant to promote free and fair market competition in the generation and supply sectors, as well as protect the public from any adverse effects that may be brought about by monopoly and market power abuse.
In a resolution, the ERC explained the need to adjust the limits due to changes in the installed generating capacity per grid and the decrease in the national grid’s total capacity.
Usually, the market cap is adjusted every year on March 15.
The ERC revised the limits to reflect a decrease in the installed generating capacity in the national grid to 14,593.5 megawatts for the second half of 2010 from the 14,712.6 MW set in March this year.
The bulk of the capacity is in the Luzon grid with 10,839 MW, down from the 11,188.5 MW reported in March this year. The capacity in the Visayas, however, increased to 1,954.8 MW for the second half of the year from 1,715.3 MW as of last March. In Mindanao, capacity dipped to 1,799.8 MW from 1,808.81 MW.
Under the Electric Power Industry Reform Act, a company or group of related companies is barred from owning, operating or controlling more than 30 percent of the installed generating capacity of a grid and/or 25 percent of the country’s total.
As such, power generation companies are not allowed to own facilities with installed capacities exceeding 3,251.7 MW in Luzon (from 3,356.5 MW as of last March 2010); 586.4 MW in Visayas (from 514.6 MW); and 539.9 MW for Mindanao (from 542.6 MW).
For the national grid, the new market share limit was set at a lower 3,648.4 MW from 3,678.1 MW.
The caps on ownership were meant to promote free and fair market competition in the generation and supply sectors, as well as protect the public from any adverse effects that may be brought about by monopoly and market power abuse.
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