ERC sets power generating limits for private firms

Energy Regulatory Commission (ERC) / STOCK

The Energy Regulatory Commission (ERC) has set this year’s adjustments in power generating capacity that companies can own in the country’s main grids to ensure a “level playing field” in the sector.

The national grid’s installed generating capacity (IGC) went up to 25,471.037 megawatts (MW) this year from last year’s 24,651.22 MW.

Under Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, companies may only own, operate or control up to 30 percent of the set IGC of a grid.

Additionally, the limit in the national grid’s IGC is 25 percent.

This year’s national IGC sets the market share limit in the grid at 6,367.759 MW from 6,162.805 MW in 2022.

In the Luzon grid, IGC is 17,788.64 MW; Visayas, 3,464.42 MW and Mindanao, 4,215.98 MW.

This means that power companies cannot own facilities with installed capacities exceeding 5,336.59 MW in Luzon, 1,039.33 MW in Visayas and 1,265.40 MW in Mindanao.

In 2022, the limit in Luzon was 5,123.26 MW, while Visayas was 1,011.79 MW and Mindanao was 1,260.31 MW.

“The ERC is mindful of its role in promoting market competition, encouraging market development, and in discouraging/penalizing abuse of market power and any anti-competitive behavior in order to ensure a level playing field, particularly in the generation sector,” the commission said.

The IGC, which is set annually, helps the ERC determine whether there has been a breach in the market share limit of any market participant.

TSB