ERC introduces ‘nonexpiring’ COCs for power generation facilities

MANILA  -The Energy Regulatory Commission (ERC) has introduced the issuance of “nonexpiring” certificates of compliance for the operation of power generation facilities as it seeks to ensure energy security and simplify regulatory processes.

Under the revised certificate of compliance rules issued on Tuesday, the ERC said it now only required applications for new generation facilities “without the need for renewal.”

Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, requires generation companies to secure certificates of compliance before starting commercial operations on their upcoming projects.

“The introduction of nonexpiring [certificates of compliance, or COCs] under the 2023 revised COC rules highlights the ERC’s agency-wide efforts to ensure energy security and to simplify regulatory processes for entities, so long as applicable conditions are met,” the commission said in a statement.

The old rules issued in 2010 stated that certificates were only valid for five years, and that renewals need to be secured from the ERC before these expired to ensure continuous power plant operations.

To encourage applications, the commission likewise provided a leniency period of six months under the revised rules for entities with self-generation facilities that do not have certificates yet.

Self-generation facilities refer to those owned and constructed by electricity end-users for their own consumption.

“The release of the 2023 revised COC rules marks a significant change in the processing and issuance of COCs to determine generation facilities’ compliance with technical, financial, environmental and other standards in order to ensure the reliable and continuous supply of electricity,” the ERC said. INQ