The Energy Regulatory Commission (ERC) has summoned 22 generation companies to explain the persistent derating of 27 power facilities between January and April this year, citing concerns over the growing unreliability of energy supply to businesses and households. Derating refers to power plants operating below their installed capacity, potentially jeopardizing electricity availability and affordability.
ERC chairperson Monalisa Dimalanta expressed regulatory alarm, noting that several plants operate below capacity daily, not just intermittently. “The persistent derated state of certain plants is concerning,” she said, underscoring the importance of determining actual system reliability.
Affected facilities span a mix of fuel technologies—natural gas, coal, diesel, biomass, geothermal, and hydro—with an estimated combined installed capacity of 9,257.7 megawatts, based on Department of Energy data. Major companies asked to explain include units of Aboitiz Power, San Miguel Corp., Meralco Power Gen, and First Gen Corp., among others.
The ERC has given the companies seven days from receipt of their notices to justify the deratings and provide concrete plans for restoring full capacity. Although no penalties have been announced, Dimalanta said sanctions may follow if violations of reliability standards, supply agreements, or market obligations are confirmed.
This development follows the separate issuance of 40 show cause orders in May to 37 gencos over fuel audit data non-compliance, signaling the ERC’s intensifying scrutiny of generator performance. The developments may influence future policies on market accountability and generation reliability in the power sector.
