ERC resumes work, approvals
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.