The Energy Regulatory Commission (ERC) has ordered 22 generation companies (gencos) to explain the continued or frequent derating of their power facilities and units from January and April 2025.
Derating occurs when power plant operate at below their maximum capacity due to various reasons.
“The Commission continues with its diligent monitoring of the reliability of our major power sources to ensure sufficiency of supply, which then affects affordability of power rates,” said ERC chairperson and chief executive Monalisa Dimalanta.
“The persistent derated state of certain plants is concerning, and has prompted the Commission to formally seek an explanation from the gencos,” she said.
In separate notices to explain (NTEs) issued on Wednesday, the ERC mandated the gencos to submit reports explaining the causes of the derating events affecting its generating facilities and units.
These gencos have varying technologies such as natural gas, coal, diesel, biomass, geothermal, and hydro.
“We just need to understand first the status of the plants so we can determine accurately the reliable capacity in the system,” Dimalanta said.
The gencos involved includes Excellent Energy Resource Inc., GNPower Dinginin Ltd., Co., MORE Power Barge, Inc., Masinloc Power Partners Co., Ltd., Mariveles Power Generation Corp., Malita Power, Inc., Quezon Power (Philippines), Ltd. Co., Sem-Calaca Power Corp., and Southwest Luzon Power Generation Corp.
The other companies are Sual Power Inc., South Premiere Power Corp., VS Gripal Power Corp., AP Renewables, Inc., Energy Development Corp., Angat Hydropower Corp., First Gen Hydro Power Corp., Power Sector Assets and Liabilities Management Corp. and SN Aboitiz Power-Magat, Inc.
Also included in the list are Grass Gold Renewable Energy Corp., Green Future Innovations, Inc., Lamsan Power Corp., San Jose City I Power Corp.
The ERC directed the gencos to submit, within 7 days from receipt of the letters, a formal explanation for the frequent derating of their plants and units, or for persistently operating in a derated state.
The commission also required the companies to provide an action plan and a timeline for restoring the affected generating facilities to their registered full capacities.
The directive was issued pursuant to Resolution No. 17, Series of 2013, entitled “A Resolution Adopting and Approving the Rules and Procedures to Govern the Monitoring of Reliability Performance of Generating Units and the Transmission System,” as amended by ERC Resolution No. 21, Series of 2016, or the “Revised Rules and Procedures to Govern the Monitoring of Reliability Performance of Generating Units and Transmission System,” which aims to promote accountability among gencos and encourage greater operational and economic efficiency.
