ERC sets installed generating capacity, market share limits

MANILA, Philippines - The Energy Regulatory Commission (ERC) has issued a resolution setting the 2010 installed generating capacity and market share limitations in the Luzon, Visayas and Mindanao grids and the national grid to level up the playing field in the power industry. 

ERC chairperson Zenaida Ducut said this is pursuant to its mandate to promote free and fair competition in the generation and supply sectors and to guard electricity consumers against the ill-effects of monopoly and market power abuse.  

The installed generating capacity refers to the sum of the maximum capacities of the generation facilities connected to a transmission or distribution system that form part of a particular grid.  Ducut said the resolution includes an appendix that contains a list of power plants in the country including the fuel type used, location and installed generating capacities stated in kW. 

The 2010 installed capacities and market share limitation were determined using a guideline promulgated under ERC resolution 26.

The installed generating capacities have increased from: 10,664,228 kW (2009) to 11,188,513 kW (2010) in Luzon; 1,645,313.40 kW (2009) to 1,715,295.40 kW (2010) in the Visayas; and 1,729,576 kW (2009) to 1,808,810 kW (2010) in Mindanao.  

These changes adjusted the installed generating capacity for the national grid from 14,039,119.40 kW in 2009 to 14,712,618.40 for 2010.

The ERC chief noted that adjustments to the installed generating capacities and the market share limitations are made on or before the 15th day of March of the succeeding years or as often as needed.

The set market share limitations are: for the Luzon grid 3,356,553.90 kw; Visayas grid, 514,588.62 kw; Mindanao grid, 542,643.00; and national grid, 3,678,154.60.

The National Power Corp.’s (Napocor) plants and those managed by the Power Sector Asset & Liabilities Management Corp. (PSALM) are exempted from the limits on concentration of ownership, operation or control of installed capacity at this time the said plants are being privatized.