ERC flags Ilijan power plant operator’s 2022 delivery gaps
The Energy Regulatory Commission (ERC) has issued a show cause order to South Premier Power Corp. (SPPC), previously wholly owned by San Miguel Corp., over an alleged anticompetitive practice recorded in June 2022.
In a statement on Tuesday, the ERC said this move came following a report from the Philippine Electricity Market Corporation (PEMC), which stated that the 1,200-megawatt Ilijan power plant had failed to deliver supply for most days in the month—particularly from June 5 to June 25—as it was on “open breaker status.”
PEMC’s report also noted that the disconnection had happened when market prices soared by 30 percent. Thinning electricity supply was also logged during the period, prompting the grid operator to issue yellow and red alerts.
“We must remind our stakeholders that power generation—while it is privatized and deregulated—remains a business imbued with public interest. Deregulation does not equate to freedom from rules,” ERC chair Monalisa Dimalanta said.
“All stakeholders, together with the regulator, have that shared obligation to ensure market integrity, fair competition and consumer welfare,” Dimalanta added.
The commission also asked PEMC to explain its actions on the Ilijan issue. It was in September 2022 when PEMC alerted the ERC on the potential anticompetitive act by SPPC. However, the agency “recalled the notice pending finalization.”
For several months, the ERC said “no further finalized report followed despite ERC’s consistent efforts to coordinate with PEMC …” It was only in May 2024 when the ERC received compliance from the PEMC.
If SPPC fails to provide an explanation within 15 days from the receipt of the order, it would face administrative sanctions and penalties, the commission warned.
SPPC is now backed by power giants SMC, Manila Electric Co. and Aboitiz Power Corp.
SMC, led by billionaire Ramon S. Ang, has yet to provide comments as of press time.
