ERC approves 14 PSAs in Q1,to shield DUs from volatilities
By Lenie Lectura – April 4, 2025
from Business Mirror
THE Energy Regulatory Commission (ERC) has approved 14 Power Supply Agreements (PSAs) and issued 977 Certificates of Compliance (COCs) and Provisional Authorities to Operate (PAOs) in the first quarter of 2025.
These approved PSAs cover power supply to various distribution utilities, particularly those in Region 8, to mitigate exposure to price volatilities in the market.
The 977 issued COCs, meanwhile, authorize the operations of 94 self-generating facilities (SGFs), seven independent power producers (IPPs), and 868 net-metering qualified end-users (QEs) while 77 PAOs were granted to IPPs across Luzon, Visayas, and Mindanao—accounting for a total of 5,419 megawatts (MW) of supply to the country’s power grid.
On average, the ERC processed COCs within 26 days, significantly faster than the 60-day timeframe mandated under the Energy Virtual One-Stop Shop (EVOSS) Act.
The PSA approvals, meanwhile, were completed in 60 days, ahead of the mandated processing period of 75 days for provisional authorities.
The ERC grants COCs to authorize the operation of power plants and other generation facilities, while PAOs allow generation companies (GenCos) to commence operations pending full COC approval.
Meanwhile, PSAs, or the bilateral agreement between a power generation company and a Distribution Utility (DU) for the purchase and supply of power, also undergo ERC review and approval.
“In just three months, the ERC has successfully processed and issued PSAs, COCs, and PAOs way earlier than the timelines set by the EVOSS Act,” said ERC Chairperson and CEO Monalisa C. Dimalanta in a statement.
“This is proof that the reforms we are undertaking are speeding up our regulatory processes to ensure energy security through additional capacity from new grid-connected facilities, while also empowering consumers to save on electricity costs by generating their own power,” Dimalanta added.
