Business World Online
Posted on March 21, 2014 08:00:21 PM
THE ENERGY Regulatory Commission (ERC) has adjusted generation capacity limits for companies this year to prevent market power abuse in the industry.
The regulator, in a statement on Friday, said it approved on March 10 new installed generating capacities per grid and national grid, as well as market share limitations or the percentage a power-generating company or related group can own and operate.
The ERC statement showed that the national grid has a total 15,832.34 megawatts installed generating capacity this year from 15,717.37 MW last year.
The installed generating capacity refers to the sum of the maximum capacities of the generation facilities connected to a transmission or distribution system that form part of a particular grid.
Specifically, Luzon now has 12,041.41 MW from 11, 859.989 MW; Visayas has 1,827.29 MW from 2,045.640 MW; and Mindanao has 1,963.63 MW.
According to the statement, the adjustments were promulgated pursuant to the ERC’s mandate to promote free and fair competition in the generation and supply of electricity, to achieve greater operational and economic efficiency and to ensure consumer protection and enhance the competitive operation of the markets for generation and supply of electricity.
Section 45 (a) of the Electric Power Industry Reform Act of 2011 (EPIRA; Republic Act No. 9136), provides that no company or related group can own, operate or control more than 30% of the installed generating capacity of a grid and/or 25% of the national installed generating capacity.
Hence, a company or a group of related companies can account for 30% of the total installed generating capacity in the grid or a total of3,612.42 MW in the Luzon grid; 548.187MW in the Visayas grid; and 589.091 MW in the Mindanao grid.
Or, if operations of the company are not concentrated in one particular region, a company can own 25% or 3,958.087 MW of the national grid’s total installed capacity.
The ERC said the adjustments to the installed generating capacity were caused by "the exclusion of Power Barge 103 located in Estancia, Iloilo, due to on-deactivated shutdown (undergoing rehabilitation); the decrease in the IGC of AP Renewables, Inc.’s Tiwi and Makban GPPs [geothermal power plants] due to fuel (steam) supply constraints and decline in the steam reservoir conditions; and the increase and decrease in the IGC of various IPPs due to high/low water elevation for hydroelectric plants, and power output during the conduct of capacity test to determine the maximum capacity of the generating facilities."
"The ERC sets the Installed Generating Capacity and the Market Share Limitation yearly to promote free and fair competition in the generation and supply of electricity, to ensure consumer protection, and to enhance the competitive operation within the industry," ERC Chairperson Zenaida G. Cruz-Ducut was quoted saying in the statement. -- Daryll Edisonn D. Saclag source
