ERC announces caps for grid market share, generating capacity 

THE Energy Regulatory Commission (ERC) said it set the new caps for installed generating capacity (IGC) and market share limits for the main grids in 2023.

“The ERC is mindful of its role in promoting market competition, encouraging market development, and in discouraging/penalizing abuse of market power and any anti-competitive behavior in order to ensure a level playing field particularly in the generation sector. The IGC serves as our baseline in determining the existence of a breach in the market share limit of any market participant,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a statement on Monday.

The ERC set the national upper limit on installed generating capacity at 25.47 million kilowatts (kW), up from 23.42 million kW previously.

For Luzon the allotted installed generating capacity for 2023 is 17.79 million kW; the Visayas 3.46 million kW; and Mindanao 4.22 million kW.

IGC is the maximum capacity of the generation facilities connected to a transmission system or distribution system, which are part of a particular grid.

The ERC sets IGC caps annually.

The market share limits for the Luzon, Visayas and Mindanao grids are 30% each, with the cap for power companies connected to the national grid at 25%.

Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 requires that no company or related group can own, operate or control more than 30% of the IGC of a grid and 25% of the national IGC. — Ashley Erika O. Jose