ERC resets generating capacities and market share limitations

The Energy Regulatory Commission (ERC), on 11 July 2007, issued Resolution No. 20, series of 2007 (Res. 20, s. 2007), setting the new installed generating capacity and market share limitations. This was promulgated by the ERC in furtherance of its mandate to promote free and fair competition in the generation and supply of electricity. The 2007 installed capacity and market share limitations were determined using the “Guidelines for the Determination of Installed Generating Capacity in a Grid and the National Installed Generating Capacity and Enforcement of the Limits of Concentration of Ownership, Operation or Control of Installed Generating Capacity” which took effect on 22 February 2006.

The resolution reset the generation capacity in the Luzon, Visayas and Mindanao grids. There has been a slight reduction in the installed generation capacity. The 2007 installed generating capacity had been reset from 11,768,458 kW in 2006 to 10,867,220 kW for Luzon; from 1,579,006 kW to 1,506,540 kW for Visayas; from 1,868,130 kW to 1,867,250 kW for Mindanao; and from 15,215,594 kW to 14,241,010 kW for the National Grid.

Section 45 (a) of the EPIRA (Electric Power Industry Reform Act) prohibits any company or related group from owning, operating or controlling more than thirty percent (30%) of the installed generating capacity of a grid and/or twenty-five percent (25%) of the national installed generating capacity in order to promote true market competition and prevent harmful monopoly and market power abuse.

Adjustments to the installed generating capacities and the market share limitations will be made on or before the 15th day of March of the succeeding years or as often as needed. “The ERC is glad to report that no generation company or any other entity has violated the market share limitations per grid and in the national grid. Rest assured that the ERC will continue its vigilance to protect the interests of the stakeholders of the electric power industry as it moves forward to bring a brighter future to the Filipinos,” ERC Chairman Rodolfo B. Albano, Jr. said.

July 30, 2007