The Department of Energy (DOE) plans extending power plants longer maintenance shutdowns than are allowed at present to help generation companies perform better and avoid more frequent outages in the future.
DOE Secretary Raphael Lotilla said more advanced countries like Japan have since adopted the practice longer maintenance shutdowns as a matter of course and should be considered by local authorities.
“Because then, they will be able to take a deep dive, to really inspect the different parts of the plant. So, we’re looking as well into that and it’s not only from a purely punitive standpoint. You see, preventive maintenance is very important. Just like in aircraft, you have to have regular maintenance and enough time to carry it out,” Lotilla told reporters at the sidelines of a corporate event in Makati City.
Lotilla said power plants historically have only been allowed limited scheduled maintenance days, especially during periods of high temperature and during elections.
The DOE chief said the Energy Regulatory Commission (ERC) is interested in integrating heatwaves as part of parameters in helping decide the length of plant shutdowns for maintenance purposes.
Lotilla said some have expressed doubts as to whether or not power plant companies live up to the standards of reliability that the ERC has imposed on the industry.
“There are metrics for this but as you know, the existing power of the ERC to impose penalties is limited and therefore, it may not produce the kind of deterrent effect that we would like to have,” Lotilla said.
Under interim ERC rules, pulverized coal plants are allowed a combined forced and unforced unavailable days of 44.7, circulating fluidized bed (CFB) coal plants only 32.3 days; combined cycle gas plants with 20.2 days; gas turbine plants another 29.2 days; diesel plants only 19 days; geothermal only 19.7 days; hydro with only 29.9 days; oil-fired thermal only 58.6 days and biomass plants with 39.7 days.
Should generation companies exceed the allowable unavailable days, the ERC will issue notices of non-compliance with an order to explain. If later they are found non-compliant, appropriate sanctions and financial penalties may be applied.
In January this year the ERC announced imposing approximately P60 million in penalties as of 29 December 2023 against generation companies for violation of the reliability index.
ERC chair Monalisa Dimalanta said the Electric Power Industry Reform Act of 2001 has to be amended to allow power firms to refunds consumers inconvenienced by the power outages.
Unless the EPIRA is amended, the penalties are merely remitted to the national treasury.
