ERC hikes capacity limits for power generation firms

By Lenie Lectura May 13, 2020
https://businessmirror.com.ph/2020/05/13/erc-hikes-capacity-limits-for-power-generation-firms/

The Energy Regulatory Commission (ERC) has issued a resolution increasing the capacity limits of power generation companies (gencos) for this year.

The commission set the Installed Generating Capacity (IGC) limit in the Luzon grid to 4,813.20 megawatts, from last year’s 4,605.25MW per genco.

In Visayas, the ERC set the capacity limit of gencos to 1,009.97MW this year, from last year’s 909.44MW. gencos in Mindanao are limited to own or control 1,199.73MW this year, from last year’s 1,026.25MW.

The capacity limits represent 30 percent of the total installed capacity in each grid, the ERC resolution stated.

The total IGC for Luzon, Visayas and Mindanao this year is set at 16,044MW, 3,366.56MW and 3,999.10MW, respectively.

In 2019, the IGC stood at 15,350.82MW in Luzon; 3,031.46MW in Visayas; and 3,420.82MW in Mindanao.

On a nationwide scale, this year’s maximum capacity that one power firm can own is set at 5,852.41MW, representing 25 percent of the country’s IGC which is 23,409.65MW.

In 2019, the country’s total IGC stood at 21,803.10MW. A genco was allowed then to own not more than 5,450.78MW, representing 25 percent of the 2019 total IGC.

Pursuant to Section 45 (a) of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 (Epira), the ERC is mandated to set the numbers annually to prevent a person, company, related group or independent power producer administrators, singly or in combination, to own, operate, or control more than 30 percent of the IGC per grid, and 25 percent of the national grid.

In line with this provision, the ERC issued Resolution 26, Series of 2005, which set the guidelines for the determination of IGC for each grid and the national grid.

“Pursuant to its mandate of promoting 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, the ERC resolved, as it hereby resolves to set the 2020 IGC per grid and national grid, and MSL [market share limitation] per grid and national grid, using Pmax as the maximum capacity adopted for generation facilities,” ERC Resolution 2, Series of 2020 stated.

The IGC and MSL per grid and nationwide are adjusted by the ERC on or before March 15 of the succeeding years or as often as necessary.

The ERC resolution was signed on March 12, but was approved for posting just recently.