ERC adjusts power generating capacity caps

The Energy Regulatory Commission has adjusted the limits on the power-generating capacity that a single entity can own or acquire to protect electricity consumers from possible monopoly.

In a resolution, the ERC revised the market ownership limits to reflect the increase in the installed generating capacity in the national grid to 15,219.6 megawatts this year from 14,976 MW in 2011.

Data from the ERC show that the Luzon grid handles about 75 percent of the country’s total load at 11,388 MW, up from the 11,167 MW generating capacity in Luzon. The capacity in the Visayas also rose slightly to 2,063 MW from 2,052 MW in the previous year. Similarly, the Mindanao grid reported a capacity increase to 1,769 MW from 1,757 MW a year ago.

Under the Electric Power Industry Reform Act, a company or group of related companies is barred from owning, operating or controlling more than 30 percent of the installed generating capacity of a grid and/or 25 percent of the country’s total. As such, power generation companies are not allowed to own facilities with installed capacities exceeding 3,416 MW in Luzon; 619 MW in Visayas; and 531 MW in Mindanao.

For the national grid, the market share limit was set at 3,805 MW.

Currently, the three biggest power players in the country are San Miguel Corp., Aboitiz Power Corp. and the Lopez-led First Gen Corp.

ERC chairperson Zenaida G. Cruz-Ducut earlier said the adjustments in the ownership limits were meant to prevent abuse and misuse of market power; promote free and fair market competition in the generation and supply sectors; and protect the public from the adverse affects of a monopolistic situation.

A number of factors were considered in adjusting the installed generating capacity per grid and national grid, including increases and decreases in the installed capacity of the power plants in Luzon, Visayas and Mindanao.