ERC cites need for a COC as it extends application deadline to June 30

“The Energy Regulatory Commission (ERC) is mandated by law to register all existing and newly constructed power generating facilities”, ERC Chairman Rodolfo B. Albano, Jr. explained in reaction to a press statement made by Mindanao business groups protesting the requisite of registering their power generation sets with a fee.

The Chief Regulator emphasized that the purpose of the registration is to account for the power capacities available in regions all over the country to enable it to correctly evaluate expansion plans made by power providers for ERC approval. It will also give assurance that the power generated conforms to standards set in the Philippine Grid and Distribution Codes (PGDC) for safety and reliability.

The influx of applications for Certificate of Compliance (COC) and the enormous request to extend the deadline for SGF registration prompted the ERC to issue a resolution extending the deadline for submission of application from March 31, 2005 to June 30, 2005. To date, the ERC has issued a total of 1,148 COCs to generating companies and entities with SGFs.

Section 4 in relation to Sections 1and 2, Rule 5 of the Implementing Rules and Regulations of R. A. 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001 states that no person or entity shall engage in the generation of electricity unless it has complied with technical and safety standards set by the Rule, including applicable laws or regulations pertaining to environmental standards.

A COC issued by the ERC is necessary before a person or entity may lawfully engage in the generation of electric power, including self-generation. Generators used by households, clinics, hospitals, and other medical institutions are exempted from this requirement.

Applicants for COC with facilities below 1MW must submit an application form and company profile with the ERC. Those owning generation sets with a power rating of 1MW and above are required to submit additional documents such as SEC registration, General Information Sheet, DOE/NPC Certificate of Accreditation, if applicable, 3-year operational history, and other papers that the ERC may require.

A registration fee as approved by the commission pursuant to Section 6 of the EPIRA shall be charged as follows: Php 10,000.00 for Independent Power Producers (IPPs), Php1,500.00 for Self Generation Facilities (SGFs) with aggregate installed capacity of 100kW and below, Php5,000.00 for SGFs with 101 to 500kW aggregate installed capacity, Php7,500.00 for 501 to 999kW, and Php10,000.00 for 1MW and above SGFs.

“The fees collected are directly remitted to the government coffers. ERC merely collects the fees”, Chairman Albano clarified in reaction to allegations that the Commission is benefiting from such fees.

All applications from Luzon including Independent Power Producers (IPPs) and distribution utilities (DUs) nationwide shall be received and processed by the Licensing & Market Monitoring Division (LMMD), ERC Main Office located at 12th Floor, Pacific Center Building, San Miguel Ave., Ortigas Center, Pasig City with telephone numbers 631-58-59/635-68-94. On the other hand, ERC’s Visayas and Mindanao Field Offices will process applications for COC on SGFs alone within their respective area. For assistance and further details, applicants may contact ERC Visayas Field Office at telephone number (032) 234-4589 located at Room 303 Machay Building, Gorordo Ave., Cebu City, or the Mindanao Field Office located at Mintrade building, Monteverde Ave., corner Sales St., Davao City with telephone number (082) 224-1575. Application forms can be downloaded from the ERC website at www.erc.gov.ph.

April 04 , 2005

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