22 gencos flagged for poor performance
Twenty-two power generation companies (gencos), including those owned by big players, are under scrutiny by the Energy Regulatory Commission (ERC) for their “continued or frequent derating” operations.
Sometimes due to years of deterioration or to prolong a generation plant’s lifespan, derating is used to reduce a facility’s committed capacity.
In a message to reporters, ERC Chair Monalisa Dimalanta said some of the plants were “derated intermittently … but some consistently, daily.”
She said the situation was “concerning” as this could result in more expensive electricity rates.
The commission said it issued notices to the concerned companies on Wednesday, requiring them to explain their poor performances between January and April of 2025.
Two of the notable gencos, Excellent Energy Resource Inc. and South Premiere Power Corp., are backed by big names. They are joint ventures of Manila Electric Co., San Miguel Corp. (SMC), and Aboitiz Power Corp. (AboitizPower).
Other SMC units named were Masinloc Power Partners Co. Ltd., Mariveles Power Generation Corp., Malita Power Inc., Sual Power Inc., and Angat Hydropower Corp.
Those under AboitizPower were GNPower Dinginin Ltd., Co., AP Renewables Inc., and SN Aboitiz Power-Magat Inc.
Two firms, under Semirara Mining and Power Corp., were also listed: Southwest Luzon Power Generation Corp. and Sem-Calaca Power Corp.
Likewise, two gencos under Lopez-led First Gen were flagged: Energy Development Corp. and First Gen Hydro Power Corp.
Reliability standards
The gencos that were called out use the following technology: combined-cycle power plants, pulverized coal, diesel, circulating fluidized bed, geothermal, hydroelectric and biomass.
Dimalanta said the commission follows a reliability index, or a grading system to determine if firms—depending on their technology—comply with the allowable maximum days of planned and unplanned outages per year.
“The commission continues with its diligent monitoring of the reliability of our major power sources to ensure sufficiency of supply, which then affects affordability of power rates,” the ERC chief said.
She said they have yet to determine the sanctions.
Aside from the reliability index, she said the ERC would also have to study the firms’ power supply agreement and Wholesale Electricity Spot Market must-offer obligations. The latter prohibits gencos from offering capacities below their committed capacities sans a valid reason.
The companies, the ERC said, were required to submit their responses within seven days from receipt of the letters.
They were also directed to craft an action plan and a timeline for restoring their generating facilities to full capacity.
