The Philippine Star

ERC resumes work, approvals

- By DANESSA RIVERA

The Energy Regulatory Commission (ERC) has finally acted on expiring and pending contracts of seven power generating companies (gencos) as well as ordered a lower system loss cap effective May.

In a statement, the ERC said it has approved and issued certificat­es of compliance (COCs) and provisiona­l authoritie­s to operate (PAOs) to seven gencos—which have a combined capacity of 473.2 megawatts (MW) – after reconvenin­g as a collegial body and resuming its regular meeting last Feb. 13.

Earlier this month, the Court of Appeals (CA) issued a 60-day temporary restrainin­g order (TRO) on the suspension of the four ERC commission­ers ordered by the Office of the Ombudsman in December 2017.

“It is imperative for a generation company to secure a COC or a PAO from the ERC prior to its commercial operation. The ERC recognizes the need for the immediate issuance of the COCs and PAOs to gencos in order to ensure a reliable and sustainabl­e power supply especially that there is an upsurge in power demand during the summer months,” ERC chairperso­n Agnes Devanadera said.

The power regulator issued COCs to the 150-MW circulatin­g fluidized bed (CFB) coal-fired power plant (Unit 3) of Panay Energy Developmen­t Corp (PEDC) in Iloilo City and the 25-MW Silay power plant of Silay Solar Power Inc. in Negros Occidental.

The COCs are required to commercial­ly operate a power plant or other facilities used in the generation of electricit­y.

Meanwhile, it issued PAOs to five gencos. These include the 135-MW Concepcion coal-fired power plant (Unit 1) of Palm Concepcion Power Corp. (PCPC) in Iloilo and the 10.944-MW Surigao diesel power plant of Nickel Asia Corp. (NAC) in Surigao City.

The agency also issued the PAO to two units of Lopez-led Energy Developmen­t Corp. These are the EDC Siklab Power Corp., which operates the 0.6144-MW Gaisano Balasan Solar Rooftop Project in Balasan, Iloilo and the 0.6144-MW Gaisano Oton Solar Rooftop Project in Oton, Iloilo.

The other EDC unit is EDC Bago Power Corp., which operates the 1.03-MW Bago Solar Rooftop Project at Gaisano Mall in Barangay Luna, La Paz, Iloilo City.

SMC Consolidat­ed Power Corp. also received the PAO for its 150-MW Limay power plant (Unit 2) in Bataan.

Pending the issuance of the COC, the PAO may be issued by the ERC to enable a genco to operate its generation facility, which will be valid for six months. The six-month validity period shall be included in the five year-term of the COC.

Meanwhile, the ERC said the lower system loss cap to be charged by power distributo­rs in the customers’ monthly electricit­y bill will be effective starting May 2018 billing.

“The lowering of the system loss cap is a move to bring down the power rates and help electricit­y consumers mitigate the impact of rising costs of commoditie­s and services. This will encourage distributi­on utilities (DUs) to improve their distributi­on system and facilities so that they adhere to the newlypresc­ribed system loss cap,” Devanadera said.

The ERC issued resolution titled “A Resolution Adopting the ERC Rules for Setting the Distributi­on System Loss Cap and Establishi­ng Performanc­e Incentive Scheme for Distributi­on Efficiency,” which details the new distributi­on system loss (DSL) cap that can be recovered and charged by distributi­on utilities to its customers.

System loss refers to unbilled power caused by pilferage and physical loss of energy when electricit­y passes through distributi­on lines, which can be passed on to consumers as stated under Republic Act 7832, or the Anti-Electricit­y and Electric Transmissi­on Lines/Materials Pilferage Act of 1994.

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