Manila Bulletin

ERC re­vis­ing guide­lines on power firms’ ca­pac­ity stake

- By MYRNA M. VE­LASCO United States Department of Energy · Power Corp of Canada · National People's Congress · National Power Corporation

With the evo­lu­tion of in­dus­try poli­cies as well as the need to fac­tor in the tech­ni­cal lim­i­ta­tions of power plants, the Energy Reg­u­la­tory Com­mis­sion (ERC) will be mod­i­fy­ing the guide­lines set­ting the ca­pac­ity own­er­ship caps or lim­its for gen­er­a­tion com­pa­nies.

The reg­u­la­tory body al­ready set out the “Is­sues Pa­per” for the pro­posed pol­icy mod­i­fi­ca­tion and has been so­lic­it­ing in­puts and com­ments from af­fected stake­hold­ers.

The de­ter­mi­na­tion of mar­ket share lim­its for each Genco shall be an­chored on in­stalled gen­er­at­ing ca­pac­i­ties per grid and on a na­tional ba­sis, con­sis­tent with the pre­scrip­tion of the Elec­tric Power In­dus­try Re­form Act.

The ERC noted that it “sees the need to re­view, amend or clar­ify the fore­go­ing pro­vi­sions of the Guide­lines to ad­dress sev­eral is­sues and con­cerns ow­ing, among oth­ers, to the pas­sage of in­dus­try-re­lated poli­cies, laws and reg­u­la­tions.”

The Com­mis­sion said that in par­tic­u­lar, “there is a need to re­view, re­vise or sup­ple­ment the method­ol­ogy in cred­it­ing the in­stalled gen­er­at­ing ca­pac­i­ties of gen­er­at­ing plants based on own­er­ship/af­fil­i­a­tion, op­er­a­tion and con­trol” of the power fa­cil­i­ties.

Fun­da­men­tally, the ERC em­pha­sized that it shall en­deavor to har­mo­nize the data based on ar­ray of con­cerns pre­vi­ously raised by the Depart­ment of Energy (DOE) and other rel­e­vant par­ties – es­pe­cially those re­lat­ing to the avail­able ca­pac­i­ties of power plants in con­sid­er­a­tion of their tech­ni­cal and other con­straints in oper­a­tions.

The stan­dard­iza­tion of def­i­ni­tion of terms – from in­stalled ca­pac­ity, max­i­mum ca­pac­ity, rated ca­pac­ity, de­pend­able ca­pac­ity, name­plate rat­ing and other rel­e­vant terms, shall also be achieved in this pro­pounded pol­icy and reg­u­la­tory frame­work re­in­force­ment.

“The DOE in its var­i­ous com­mu­ni­ca­tions, in­formed the ERC on the need to har­mo­nize data on power plant ca­pac­i­ties, in­clud­ing def­i­ni­tion of terms as rec­om­mended by (an) in­ter­a­gency tech­ni­cal work­ing group,” the ERC said.

In the case of the in­de­pen­dent power pro­duc­ers (IPPs) with power sup­ply con­tracts with state-run Na­tional Power Cor­po­ra­tion, the cred­it­ing of ca­pac­i­ties shall still be based on “con­trol of dis­patch” and not the own­er­ship of power plants that shall be given merit in the cal­cu­la­tion of mar­ket share caps.

“It is the con­trol and not the own­er­ship of the power plants which de­ter­mines who should be cred­ited with the to­tal ca­pac­ity un­der con­tract as it is NPC that ac­tu­ally con­trols the quan­tity (dis­patch level) gen­er­ated from the sub­ject power plants and the price of elec­tric­ity of­fered to the mar­ket,” the reg­u­la­tory body has stip­u­lated.

Newspapers in English

Newspapers from Philippines