2008 generating capacities and market share limitations set by ERC
The Energy Regulatory Commission (ERC) issued Resolution No. 4, series of 2008 on 12 March 2008 setting the new installed generating capacity and market share limitations (MSLs). 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 installed generating capacity had been reset: (a) from 10,867,220.00 kW in 2007 to 10,060,904.00 kW for the Luzon Grid; (b) from 1,506,540.00 kW to 1,637,270.40 kW for the Visayas Grid; and (c) from 1,867,250.00 kW to 1,703,348.00 kW for the Mindanao Grid. These changes adjusted the national installed generating capacity from 14,241,010.00 in 2007 down to 13,401,522.00 for 2008 primarily due to the decommissioning of old plants.
The 2008 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.
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 are made on or before the 15th day of March of the succeeding years or as often as needed.
“The ERC notes 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
in order to protect consumers against anti-competitive behavior, market power
abuse and the like,” ERC Chairman Rodolfo B. Albano, Jr. said.
March 25, 2008