ERC adjusts power generation caps

The Energy Regulatory Commission (ERC) has approved adjustments in the power-generating capacity that a single entity can own or acquire to protect electricity consumers from a possible monopoly.

The adjustments were made to reflect the increase in the national grid’s installed generating capacity to 15,717.37 megawatts (MW) as of March 2013 from 15,219.63 MW in 2012.

ERC data show that the generating capacity in Luzon grid accounts for some 75 percent of the country’s total load at 11,859.988 MW as of March this year, up from from 11,387.583 MW a year ago. The Visayas grid handled 13 percent at 2,045.64 MW. The Mindanao grid, accounting for 11.53 percent of generating capacity, also reported an increase to 1,811.742 MW from 1,768.848 MW.

The Electric Power Industry Reform Act bars a company or group of related companies 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 cannot own facilities with installed capacities exceeding 3,558 MW in Luzon; 614 MW in Visayas; and about 544 MW in Mindanao. For the national grid, the market share limit was set at 3,929.343 MW.

ERC said some factors leading to increases in the installed generating capacity include the rehabilitation of production wells of geothermal plants in Luzon Bac-Man GPP; high water elevation in Magat hydro-electric plants; and new, or re-commissioned, or repowered or replaced, or additional power plant facilities of Independent Power Producers (IPPs). Riza T. Olchondra