ERC approves 176 power plant licenses
By Myrna M. Velasco – July 19, 2020, 10:00 PM
From Manila Bulletin
Even in the midst of persisting quarantine measures in the country, the Energy Regulatory Commission (ERC) has approved the issuance of 176 certificates of compliance (COCs) and provisional authorities to operate (PAOs) or the licenses that are required for power plant owners and operators so they can continually run their electric generating facilities.
The regulatory body indicated that the COCs and provisional permits had been granted to independent power producers (IPPs) or generation companies (GenCos); qualified end-users; and self-generation facilities over the periods from March 15 to July 14 this year.
To note, the ERC previously made pronouncement that given the country’s dilemma with the coronavirus pandemic, it may not be able to act immediately on the COC applications of power plants because the health crisis may hamstring the technical and physical inspections of facilities, a key requirement before COCs or PAOs are issued.
At this stage though, ERC Chairperson Agnes T. Devanadera stressed that “work in the ERC must go on despite the lockdown measures implemented by the government, because keeping a sustainable electricity is very crucial especially during this time of the COVID-19 pandemic.”
The ERC chief explained “the COCs and PAOs that we have approved will authorize the generation companies to start their commercial operations in order to ensure a stable and reliable power supply.”
Specifically, the power industry regulator stated that 51 COCs had been granted to the IPPs – the bulk or about 33 are of ‘provisional authority to operate’ stature. Of the total, 15 are new COCs; while 36 are renewals.
Additionally, the ERC issued 76 COCs to qualified end-users; while the balance of 46 COCs had been bestowed to self-generation facilities.
The ERC chief reiterated “the Commission assures the GenCos that they will be issued the required COCs or PAOs within the prescribed period to enable them to operate and augment the country’s power supply.”
As dictated by edicts and relevant laws primarily the Electric Power Industry Reform Act (EPIRA), the COCs are being issued to power plants and other generating facilities so they can seamlessly generate electricity that will then be utilized in power service delivery to consumers.
The PAO, in particular, is being issued in the form of a notification to the generation company and is valid for a period of six months from the time it was issued. Then that six-month period shall be included in the typical five-year term of a COC.
The regulatory body’s action on the COCs and PAOs while it institutes work-from-home and skeleton workforce arrangements, according to Devanadera, “will help ensure an interrupted electricity and help alleviate the impacts of this pandemic.”
