Regulators fine Lopez-led power firm for frequent plant outages

By Angelica Y. Yang – May 17, 2022 | 5:44pm
from Philstar.com

The Energy Regulatory Commission (ERC) said monitoring generation companies (gencos) and their compliance to their yearly maximum allowable outage limits, is one way to ensure that power firms do not “unnecessarily” go on outages.

The STAR / Miguel de Guzman, file

MANILA, Philippines — The Energy Regulatory Commission (ERC) has ordered the Lopez-led FGP Corp., to pay a fine of P246,000 for exceeding the maximum yearly outage limit in 2021.

FGP operates the 265-megawatt (MW) combined-cycle San Lorenzo Unit 50, which logged total of 10.7 unplanned outage days from January 2021 to April 25, 2021.

This is more than the 7.7 days of allowed unplanned outage which ERC allows power firms to have each year.

In a 12-page decision, ERC said that FGP is liable for incurring three days of such outages, which violates an earlier resolution issued in 2020.

FGP has defended the outages, saying that they were a result of activities related to replacing parts inside the power plant, as well as the observance of COVID-19 protocols to complete repair works.

However, ERC was not persuaded, and eventually concluded that the reasons were “unjustified and without merit.”

“FGP is hereby directed to pay the penalty of P246,000 within 10 days from receipt thereof,” ERC said in its order.

The order, promulgated on May 13, 2022, was signed by ERC Chairperson and CEO Agnes Devanadera and three commissioners.

Earlier this year, ERC imposed a fine of P15.5 million to ten generation companies for breaching the maximum yearly outage limit in 2021. Majority of the units that went on outage during this time were diesel plants.