Republic of the Philippines


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ERC directs GenCos to explain forced outages

      The Energy Regulatory Commission (ERC) required the generation companies (GenCos) to submit a detailed report on the causes of forced outages within 24 hours.  The requirement is in addition to the regular reporting required of the GenCos whose facilities have been on forced outage status. 

      “The ERC has been closely monitoring the situation and the market results as we complete data from the GenCos.  We have noted the price surges during the past few days and have also identified the plants that have gone on unscheduled outages.  If this condition persists for some time, we will look into the bidding patterns of these power plants.  Sanctions will also be imposed in case of the GenCos’ non-compliance with our directive”, ERC Chairman and CEO Jose Vicente B. Salazar stated.

      The ERC also required the GenCos to submit the action undertaken and protocols to address these contingencies.  Validation shall be made by the ERC on the justifications proferred by these entities which may require even a physical inspection of the facilities.  Sustained high prices for a significant period of time may be sufficient ground to further look into the behavior of the players in the spot market.

      Chairman Salazar further asserted that, “Should the sustained high prices prevail any longer, we will not focus only on the plants on outage but also on other firms which may have taken advantage of the tight supply to drive up spot prices for their own benefit or those of their affiliates.  We could conduct another investigation, if warranted.  With the secondary price cap that the ERC has devised and put in place, we may not see the prices reaching extraordinary levels.”


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