Group calls on ERC to penalize 22 gencos for ‘poor performance’

INQUIRER FILE PHOTO

MANILA, Philippines — The Power for People Coalition (P4P) urged the Energy Regulatory Commission (ERC) to penalize various electricity generation companies. 

P4P said in a statement on Monday these firms exposed consumers to unreliable electricity supply and higher power prices.

The group said this after the ERC revealed that it is seeking an explanation to 22 power plant owners for continued derating from January to April this year. That is, the firms were not operating at “their declared maximum capacity to generate electricity.”

READ: 22 gencos flagged for ‘poor performance’

P4P also called out the ERC for its “patience and leniency” on this gencos.  It added that the regulator should instead “protect the best interest of customers.”

“Perennial deration and forced outages among these plants risk the stability of energy supply and trigger sky-high electricity prices with passed-on rates. Many of these erring power plants or their owners should have long been penalized and even blacklisted,” said Gerry Arances, convenor of P4P.

READ: The need to address rising costs and unreliable supply of electricity

“The possibility of collusion between power players is always present, but it is more apparent in periods when high demand or extreme heat is a convenient backdrop. The ERC in the past has promised to step up its police power against market abuses, yet consumers are still waiting on them to truly arrest this,” Arances added.

He also questioned the gencos’ “seriousness” in accomplishing the requirements spelled out in their contracts.

“If they fail to deliver power at their promised capacity now as they are still awaiting the approval of their contracts, what’s to stop them from abandoning their commitments in the future?” Arances said.