ERC issues revised COC rules

MANILA, Philippines — The Energy Regulatory Commission (ERC) has made significant changes in the processing and issuance of certificates of compliance (COCs) to ensure the reliable and continuous supply of electricity.

The ERC has issued a resolution adopting the 2023 revised rules for the issuance of COCs for generation facilities. These rules govern the application for a COC and provide the standards, requirements, and procedures for its issuance.

According to the ERC, the release of the revised rules marks a significant change in the processing and issuance of COCs to determine generation facilities’ compliance with technical, financial, environmental, and other standards.

A COC is a license issued by the ERC in favor of a person or entity to operate new power generation facilities.

The revised rules now stipulate that COCs are required only for the operation of new generation facilities. Renewal is not necessary, but the obligation to maintain valid and subsisting underlying permits remains.

This introduction of non-expiring COCs highlights the commission’s agency-wide efforts to ensure energy security and to simplify regulatory processes for entities, so long as applicable conditions are met.

The revised rules also provide detailed lists of requirements for COC applications covering generation facilities, entities with self-generation facilities, distribution utilities on behalf of qualified end-users, facilities classified by the Department of Energy as an energy project of national significance, and entities with distributed energy resources.

The ERC said a separate process for the application for a provisional authority to operate has also now been clearly defined in the amended rules, with detailed lists of minimum requirements acceptable to the commission, pending compliance with the conditions for the issuance of a COC.

Aside from clear checklists of requirements for both COC applications covering different types of entities and provisional authority to operate applications, the ERC said the revised rules likewise introduces timelines for evaluation by the ERC that are compliant with the Energy Virtual One-Stop Shop Act.

A leniency period of six months has been provided for entities with self-generation facilities that do not have COCs yet to encourage submission of COC applications.

Other applicable transitory provisions have also been provided to encourage adherence to the revised rules, including leniency in application fees for new generation facilities that already have pending applications for a new COC, filed prior to the release of new rules.