ERC raises market share limits for power firms
MANILA, Philippines — The Energy Regulatory Commission (ERC) raised the threshold in the total generating capacity that the national power grid would accommodate as well as the market share that power firms may enjoy, to ensure free and fair competition in the energy sector.
In a statement on Tuesday evening, the regulator said the installed generating capacity (IGC)—or the maximum capacity of generation facilities connected to a transmission or distribution system—nationwide is at a total of 25,567.27 megawatts (MW) in 2023.
This is higher by 96.23 MW compared to the maximum 25,471.037 MW a year prior.
Broken down, the IGC for Luzon this year is set at 17,961.72 MW; for Visayas, 3,417.70 MW and for Mindanao, 4,187.83 MW.
As authorized by the Epira, the ERC ruled in 2005 that power firms may own, operate or control up to 30 percent of the IGC of each regional grid and 25 percent of the national IGC.
READ: ERC sets power generating limits for private firms
Article continues after this advertisementThus, in its four-page Resolution No. 2 dated March 12, 2024, the market share limitation (MSL) is now set at 6,391.81 MW at the national level.
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In the case of Luzon, the 30-percent MSL is at 5,388.51 MW. In the Visayas and Mindanao, this is pegged at 1,025.31 MW and 1,256.35 MW, respectively.Efficiency
The ERC decides on such limits annually as mandated by Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001 (Epira).
This policy is aimed at promoting free and fair competition as well as achieving greater operational and economic efficiency in the power generation and distribution sector. Another intention is protecting the interests of consumers.
“All persons and entities covered by the MSL are reminded to strictly adhere to limitations, as well as to their duty to report to the ERC should they exceed the limits within 15 days from the start of occurrence, and the reason therefor,” the ERC said.
Based on the latest tally by the ERC, the energy platforms of the Aboitiz, San Miguel, Lopez, Ayala and Pangilinan-led groups dominate the generation sector.
Listed conglomerate Aboitiz Equity Ventures Inc. topped the list with 5,745.22 MW or a share of 22.47 percent of the national IGC. San Miguel Corp., came next with 5,057.36 MW or a 19.78-percent MSL. Lopez-led First Gen Corp. was third with 3,392.89 MW or 13.27 percent.
