The Energy Regulatory Commission (ERC) has issued revised, more practical Grid Compliance Test (GCT) requirements for older power plants, offering a clear path for these facilities to prove they can operate safely and reliably within the national power grid. The new policy, announced Thursday, applies to legacy plants—those that began commercial operations before the Electric Power Industry Reform Act of 2001 was enacted.
This regulatory adjustment comes amid recent unplanned outages and reduced output at several power facilities, mostly in Visayas and Mindanao. These issues have triggered grid alerts and pushed up electricity prices at the Wholesale Electricity Spot Market (WESM). The ERC noted that some older plants struggle to meet certain test standards set under the 2016 Philippine Grid Code due to outdated technology, or because full compliance would be technically or economically unfeasible.
Under the updated rules, legacy plants will only need to undergo six key assessments to verify essential operational capacity: minimum and maximum stable load and ramp rates, reactive capability, governor control response, fast-start capability, dispatch accuracy, and over- and under-frequency relay testing. Passing these tests allows the National Grid Corporation of the Philippines (NGCP) to issue a Final Certificate of Approval to Connect (FCATC) within timelines set by the Department of Energy. The FCATC serves as a prerequisite for securing a certificate of compliance for generation facilities.
ERC chairman Francis Saturnino Juan said the framework balances technical realities with grid safety, providing greater clarity for power companies while protecting consumers from service disruptions. For generation firms, the guidelines present a workable compliance structure tailored to qualified legacy facilities. For NGCP, the policy defines clear testing milestones prior to certification, while the ERC maintains ongoing authority to review and monitor plant performance.
The measure also aims to benefit electricity users by keeping older plants accountable to critical reliability standards without imposing impractical or unnecessary burdens. It removes unnecessary regulatory barriers that could prevent viable power facilities from continuing operations, while ensuring consistent oversight to support a stable, secure power system and consistent electricity delivery to consumers.
