ERC reviewing new capacity, market share limitations

MANILA, Philippines - The Energy Regulatory Commission (ERC) is reviewing new capacity and market share limitations (MSL) for generation companies to ensure competitiveness in the electric power industry.

The power regulator is coming up with a new study for the updated capacity threshold, ERC chairman Jose Vicente Salazar said.

The study is still ongoing. We are discussing with PEMC (Philippine Electricity Market Corp.) and GMC (Grid Management Committee),” he said.

PEMC is the operator of the Wholesale Electricity Spot Market, while GMC gives advice on the country’s power grid.

Salazar said PEMC and GMC would be given until the third week of January to submit reports on the market share limitations.

“We’re going to impose on the second or third week of January a deadline for their reports so we can compare this two decisions and determine how we’re going to move forward,” he said.

In December, PEMC had informed the power regulator it already has a preliminary position. Meanwhile, GMC is in the process of preparing a report.

Under RA 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), the ERC is to set the MSL annually to prevent a person, company, related group or independent power producer administrator (IPPA), singly or in combination, to own, operate, or control more than 30 percent of the IGC of a grid, and/or 25 percent of the national IGC.

For 2015, the ERC updated the limit to 3,917.32 megawatts from 3,612.42 MW as of March 2014 for the Luzon grid; 709.10 MW from 548.18 MW for the Visayas grid; and to 649.11 MW from 589.09 MW for the Mindanao grid.