ERC issues resolution promoting fair, free electricity generation competition

The Energy Regulatory Commission issued a resolution initially setting installed generating capacity of power grids, national grid and market share limitations per grid to promote fair and free competition in generation and supply of electricity.

The commission said that nationwide, the total installed generating capacity is 15,215,594 kilowatts with the highest generating capacity from Luzon with 11,764,458 kilowatts.

Visayas has the smallest generating capacity with 1,579,006 kilowatts while Mindanao has 1,868,130 generating capacity.

The resolution also said that the three main regions of the country, Luzon, Visayas and Mindanao will have 30 percent market share limitation as stipulated under the Electric Power Industry Reform Act.

The ERC said that this generating capacity and market share limitation shall remain and will be strictly implemented until the next adjustment which is scheduled to be on or before March 15.

On February 22 of last year, the commission said that the guidelines for the determination of the installed generating capacity in the different grids and the enforcement of the limits of concentration of ownership, operation or control of the installed generating capacity has taken effect.

The guidelines allowed ERC to initially set the installed generating capacity per grid, national grid and the market share limitations per grid to be adjusted by the ERC before the scheduled date.

The determination is based on the maximum capacity of the power plants as submitted by the generating companies and other entities that are required to submit reports.

As part of its monitoring activities, the ERC said that it finds that no generation company nor any entity has violated the market share limitations per grid and national grid in 2006. - Wenna A. Berondo