ERC issues show cause orders vs. 13 power firms over outages in Visayas, Mindanao

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The Energy Regulatory Commission (ERC) has issued 24 show-cause orders (SCO) against 13 power generation companies over power outages that hit the Visayas and Mindanao.

The commission issued the SCOs on October 14 amid its ongoing assessment over concerns of frequent power supply interruptions and high electricity prices in the two islands.

The SCOs directed the firms to explain after 48 generating units were found to have exceeded the allowable Equivalent Unplanned Outage (EOU) limits, the ERC said.

"While the initial evaluation was completed to serve as the basis for these SCOs, the Commission has yet to receive the specific verified responses required under the newly issued Orders," the ERC said in a statement.

"Upon receipt of these subsequent submissions, the ERC will immediately evaluate the additional documents and supporting records to promptly resolve the cases in accordance with applicable rules and regulations," it added.

The ERC further warned that appropriate penalties shall also be imposed if concerned power generation companies found to have violated the prescribed reliability performance standards set by the commission.

"While underscoring the need to hold GenCos accountable for established violations, the ERC reiterated that all enforcement proceedings must observe due process and that any penalties imposed must be supported by evidence and grounded in applicable regulatory standards," the agency said.

Power outages have been frequent in the Visayas grid due to thin energy reserves.

To address this, the Department of Energy (DOE) earlier ordered the National Grid Corporation of the Philippines (NGCP) to install over 250 megawatts of battery energy storage system.

The DOE is also mulling to tap liquid fuel facilities to help provide additional power to the grid. — VDV, GMA News