PRESS RELEASE: ERC further adjusts 2010 installed generating capacities and MSLs
The Energy
Regulatory Commission (ERC) released on 13 October 2010 Resolution No. 20,
series of 2010 approving the adjustments in the generating capacities and the
corresponding market share limits (MSLs) in the Luzon, Visayas and Mindanao
grids. The adjustments are normally done only once a year, with the last
made in March 2010. However, from that
time, the ERC noted significant developments such as: (a) capacity additions in
the Visayas and Mindanao grids; (b) ccorrections of
previous installed capacity computations which included those for transmission
system black start needs and standby generating sets, and (c) changes in ownership; and (d) increases or decreases in the
installed capacities in recent reports to the ERC by some generation companies. The privatization of the NPC assets played a
major factor in these developments.
Consequently, the ERC deemed that the installed generation capacity limits in the affected grids had to be adjusted to ensure that generation companies continue to be compliant with the market share limitations towards the prevention of market power abuse.
Adjustments are done in accordance with Section 45 of the Electric Power Industry Reform Act (EPIRA) that prohibits any participant in the electricity industry from cross-subsidization, price or market manipulation and other unfair and anti-competitive business practices that are detrimental and ultimately harm the interests of electricity consumers.
In March 2010, the generation capacities and market share limitations set for Luzon, Visayas and Mindanao grids were as follows:
|
Grid |
Installed Generating Capacity |
%MSL Per R.A. 9136 |
Installed Generating Capacity Limit |
|
Luzon Grid |
11,188,513.00 kW |
30% |
3,356,553.90 kW |
|
Visayas Grid |
1,715,295.40 kW |
30% |
514,588.62 kW |
|
Mindanao Grid |
1,808,810.00 kW |
30% |
542,643.00 kW |
|
National Total |
14,712,618.40 kW |
25% |
3,678,154.60 kW |
The generation capacities and limits per grid after the adjustments made by the ERC now stand at:
|
Grid |
Installed Generating Capacity |
% MSL Per R.A. 9136 |
Installed Generating Capacity Limit |
|
Luzon Grid |
10,839,012.00 kW |
30% |
3,251,703.60 kW |
|
Visayas Grid |
1,964,774.00 kW |
30% |
589,432.20 kW |
|
Mindanao Grid |
1,799,750.00 kW |
30% |
539,925.00 kW |
|
National Total |
14,603,536.00 kW |
25% |
3,650,884.00 kW |
The adjustments on the generating capacity and the market share limits were determined through the Guidelines for the Determination of Installed Generation 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 by the ERC and issued through its Resolution No. 26, series of 2005.
Rule 11, Section 4 of the Implementing Rules and Regulations (IRR) of the EPIRA limits the ownership by a company, related group of IPP or Administrator to 30% of the installed generating company in each grid. In terms of the national grid, the ownership limitation is 25%. The capacity of a facility that is owned by various entities shall be credited to the entity controlling the terms and conditions of the prices or quantities of the output of such capacity. In the case of a facility owned by different persons, the capacity of the facility will be credited to the person controlling such capacity.
“The ERC closely monitors the movement of generating capacities in the electric power industry so that the welfare and interests of stakeholders, especially the electricity consumers, are protected from market abuse. The ERC issued Resolution No. 26, series of 2005 to monitor and enforce the ownership limitations prescribed in the EPIRA,” ERC Chairperson and CEO Zenaida G. Cruz-Ducut said.
October 19, 2010