THE Energy Regulatory Commission (ERC) has asked 22 generation companies (GenCos) to explain the “continued or frequent derating of their power facilities and units.”
In a statement on Thursday, the ERC said it issued separate notices to explain (NTEs) to the GenCos, requiring them to submit reports detailing the causes of the derating events affecting their generation facilities and units.
Derating refers to power plants generating electricity below their installed capacity.
“The Commission continues with its diligent monitoring of the reliability of our major power sources to ensure sufficiency of supply, which then affects affordability of power rates,” said ERC Chairperson and Chief Executive Of-ficer Monalisa C. Dimalanta.
“The persistent derated state of certain plants is concerning and has prompted the Commission to formally seek an explanation from the GenCos.”
Among the firms issued NTEs were units of San Miguel Global Power Holdings Corp. (SMGP), Manila Electric Co. (Meralco), Aboitiz Power Corp. (AboitizPower), Semirara Mining and Power Corp. (SMPC), and First Gen Corp.
The ERC also issued NTEs to Excellent Energy Resources, Inc. and South Premiere Power Corp., joint ventures among subsidiaries of SMGP, Meralco, and AboitizPower.
Explanations were also sought from SMGP units Masinloc Power Partners Co., Ltd., Mariveles Power Generation Corp., Malita Power Corp., Sual Power, Inc., and Angat Hydropower Corp.
AboitizPower units GNPower Dinginin Ltd. Co., AP Renewables, Inc., and SN Aboitiz Power-Magat, Inc. were also served notices.
Energy Development Corp. and First Gen Hydro Power Corp., subsidiaries of First Gen Corp., were likewise asked to explain.
The ERC directed the GenCos to submit, within seven days from receipt of the letters, a formal explanation for the “frequent derating of their plants and units, or for persistently operating in a derated state.”
The commission also instructed the companies to provide an action plan and timeline for restoring the affected generating facilities to their registered full capacities.
Last month, the ERC issued show-cause orders to 37 GenCos for failing to disclose their fuel costs, which the regulator uses to validate the reasonableness of their generation charges. — Sheldeen Joy Talavera
