Republic of the Philippines


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ERC Penalizes GenCos that Breached the Maximum Allowable Unplanned Outages

The Energy Regulatory Commission (ERC) has penalized Generation Companies (GenCos) that were found to have breached the maximum allowable unplanned outage days for the year 2021.  The ERC has imposed a total of PhP15.5 Million penalty on the concerned erring GenCos.

“We have been on the watch for GenCos who are exceeding allowed unplanned outage days.  We are constantly monitoring and reviewing the weekly reports being submitted by the GenCos in compliance with our directive pertaining to the Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units.  This is one of the mechanisms devised by the Commission to ensure that GenCos do not unnecessarily go on an unplanned outage, especially during the summer months when there is surge in power demand and reserves get used up”, ERC Chairperson and CEO Agnes VST Devanadera said.

The concerned GenCos use varying energy technologies particularly Circulating Fluidized Bed, Coal-Fired, Hydroelectric, Diesel, Geothermal, and Oil-Fired Thermal.  

ERC promulgated Resolution No. 10, Series of 2020 entitled “A Resolution Adopting the Interim Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units” to set the maximum or cap for annual unplanned outages per generating plant technology.

“We urge the stakeholders’ cooperation, especially in the coming summer months and upcoming National Elections, to avoid undergoing any unplanned outage so as not to add burden to the consuming public considering that the COVID-19 pandemic has not been ruled out.  We will exercise the punitive powers accorded to ERC by the EPIRA Law to ensure that electricity consumers’ interests are promoted and protected in terms of uninterruptible power supply.  Non-adherence to our regulatory policies is non-negotiable ”, ERC Chair Devanadera added.


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