ERC revising guidelines on power firms’ capacity stake
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.