ERC adjusts 2010 generation capacities and sets market share limits
The Energy Regulatory Commission (ERC) issued on 10 March 2010 a Resolution setting the 2010 installed generating capacity and market share limitations in the Luzon, Visayas and Mindanao grids and the national grid. This is pursuant to its mandate to promote free and fair competition in the generation and supply sectors and to guard electricity consumers against the ill-effects of monopoly and market power abuse. The installed generating capacity refers to the sum of the maximum capacities of the generation facilities connected to a transmission or distribution system that form part of a particular grid. The Resolution includes an appendix that contains a list of power plants in the country including the fuel type used, location and installed generating capacities stated in kW. The 2010 installed capacities 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”, promulgated under ERC Resolution No. 26, series of 2005.
The installed generating capacities have increased from: (a) 10,664,228 kW (2009) to 11,188,513 kW (2010) in Luzon; (b) from 1,645,313.40 kW (2009) to 1,715,295.40 kW (2010) in Visayas; and (c) from 1,729,576 kW (2009) to 1,808,810 kW (2010) in Mindanao. These changes adjusted the installed generating capacity for the national grid from 14,039,119.40 kW in 2009 to 14,712,618.40 for 2010.
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 set Market Share Limitations are: (i) for the Luzon Grid = 3,356,553.90 kW ; (ii) Visayas Grid = 514,588.62 kW; (iii) Mindanao Grid = 542,643.00; & National Grid = 3,678,154.60. The National Power Corporation’s (NPC) plants and those managed by the Power Sector Asset & Liabilities Management Corporation (PSALM) are exempted from the limits on concentration of ownership, operation or control of installed capacity at this time the said plants are being privatized.
“The ERC strictly monitors the compliance of all industry participants to the set limits to protect the welfare and interests of electricity consumers and to instill confidence in investors by maintaining a level playing field in the electric power industry,” ERC chairperson and CEO Zenaida G. Cruz-Ducut said.