Energy Regulatory Commission approves permits covering 5,419 MW
ERC chair Monalisa Dimalanta said they would fast-track the approval of supply deals to protect consumers from high rates. FILE PHOTO
MANILA, Philippines — The Energy Regulatory Commission (ERC) is stepping up its regulatory processes in time for a surge in demand during the hot summer months.
In light of this, the ERC approved 14 power supply agreements and issued permits for power facilities with a combined capacity of 5,419 megawatts.
In a statement, the ERC said the supply deals approved in the first quarter cover various distribution utilities, particularly those located in the Eastern Visayas.
“[This was] to mitigate exposure to price volatilities in the market,” the regulator said.
ERC chair Monalisa Dimalanta earlier told reporters that they would fast-track the approval of supply deals to protect consumers from high rates at the Wholesale Electricity Spot Market this summer period.
Electricity consumption usually increases during the hotter months, which can put pressure on the supply side, resulting in higher rates.
The ERC also approved a number of certificates of compliance (COCs), which green light the commercial operations of power plants and generation facilities.
Breaking down, the ERC said 94 self-generating facilities received COCs; seven for independent power producers; and 868 for net-metering qualified end-users.
Provisional authority
A total of 77 provisional authorities to operate were also released, allowing the generation companies across the country to begin their operations pending full approval.
Dimalanta said the issuance of the decisions was “way earlier” than the timelines set by the Energy Virtual One-Stop Shop Act.
She noted the COCs were processed within 26 days, faster than the required 60-day timeframe.
“This is proof that the reforms we are undertaking are speeding up our regulatory processes to ensure energy security through additional capacity from new grid-connected facilities, while also empowering consumers to save on electricity costs by generating their own power,” Dimalanta said.
The ERC has been pushing for changes in the 23-year-old Electric Power Industry Reform Act. These may include restructuring in the five-member Commission, to resolve regulatory delays and bring down power costs.
The law requires at least three members of the commission for a quorum. The majority vote of two out of the three members is needed to adopt any decision.
