ERC sets capacity, market share limits for grids

By Angelica Y. Yang – April 19, 2021 | 8:20 pm
from Business World

THE ENERGY Regulatory Commission (ERC) has released its caps for installed generating capacity and market share limitations for the national and Luzon, Visayas and Mindanao grids.

In a resolution posted on its website, the ERC set the IGC of the national grid this year at 23.42 million kilowatts (kW), with 15.97 million kW allotted for the Luzon grid. Meanwhile, the IGCs of the Visayas and Mindanao were set at 3.38 million kW and 4.07 kW, respectively.

“IGC is the sum of maximum capacity of the generation facilities which are connected to a transmission system or distribution system that forms part of a particular grid,” ERC Commissioner-in-Charge Floresinda G. Baldo-Digal told BusinessWorld in a mobile message Monday.

The ERC also set the IGC limits for the Luzon, Visayas and Mindanao grids at 4.79 million kW, 1.01 million kW, and 1.22 million kW, respectively.

“The installed generating capacity (IGC) limit is the market share limitation (MSL) that a company or related group can own, operate or control per grid and national grid pursuant to the Electric Power Industry Reform Act and its Implementing Rules and Regulations,” Ms. Digal said.

The MSLs for the Luzon, Visayas and Mindanao grids are at 30% each, but the level for the national grid is 25%.

The next adjustment of the caps is due by March 15, 2022 and “every year thereafter as the need arises,” the ERC said.

The commission also explained that it is implementing the resolution in line with its mandate to promote fair competition, and ensure consumer protection.

The resolution was signed by ERC Chairperson and Chief Executive Officer Agnes VST Devanadera and four commissioners.