ERC Issues Resolution Setting the Installed Generating Capacity and Market Share Limitation per Grid and National Grid for 2022

Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, the Energy Regulatory Commission (“ERC”) is mandated to promote free and fair competition in the generation and supply of electricity to achieve greater operational and economic efficiency, and to ensure consumer protection and enhance the competitive operation of the markets for generation and supply of electricity. 

In accordance with the aforesaid mandate, the ERC issued Resolution No. 26, series of 2005 or the Guidelines for the Determination of Installed Generating Capacity in a Grid and the National Installed Generating Capacity and Enforcement of the Limits of Concentration of Ownership, Operation or Control of Installed Generating Capacity (“MSL Guidelines”) which took effect on 22 February 2006. Under the MSL Guidelines, the ERC shall adjust the Installed Generating Capacity (“IGC”) and Market Share Limitation (“MSL”) per Grid and National Grid on or before the 15^th of March of the succeeding years and/or as often as may be necessary. 

Pursuant to the MSL Guidelines, the ERC issued Resolution No. 1, series of 2022 (“Resolution”) on 09  March 2022 to adjust the determination of the IGC and MSL per Grid and National Grid. The ERC uses Pmax as a standard basis for identifying the maximum capacity for generation facilities for the calculation of the IGC. ERC Resolution No. 16, series of 2014 defined Pmax as the maximum demand in MW that a generating unit, or generating block or module, in case of a combined cycle powerplant, can reliably sustain for an indefinite period of time, based on the generator capability test. 

In the Resolution, the ERC set the 2022 IGC and MSL per Grid and National Grid using Pmax as the maximum capacity adopted for generation facilities as follows:

The same shall remain and shall be strictly enforced and implemented until the next adjustment thereto which may be on or before the 15^th of March 2023, and every year thereafter, and/or as the need arises.