Strict reliability limits and regulatory accountability are taking center stage as energy oversight officials target chronic generator downtime driving elevated electricity rates and supply deficits across the southern grids.
The Energy Regulatory Commission (ERC) issued 24 show-cause orders (SCOs) against 13 power generation companies over recurring power outages in the Visayas and Mindanao.
The orders, issued on Oct. 14, require the targeted companies to explain why 48 generating units exceeded their allowable Equivalent Unplanned Outage (EOU) limits, the ERC said.
The commission noted that the enforcement action followed an initial assessment into frequent regional power interruptions and escalating electricity prices across both island groups.
“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.
The regulatory body added that it will review the generation companies’ submissions and supporting evidence upon receipt to resolve the enforcement cases under existing administrative rules.
The ERC warned that monetary penalties and regulatory sanctions will be imposed on generation firms proven to have breached prescribed operational reliability standards.
The commission also stressed that administrative enforcement proceedings must adhere to due process, with any final penalties grounded in verified evidence and regulatory criteria.
Recurring power interruptions continue to destabilize the Visayas grid due to thin operational reserves.
To stabilize supply, the Department of Energy (DOE) directed the National Grid Corporation of the Philippines (NGCP) to deploy over 250 megawatts of battery energy storage systems.
The DOE is also evaluating the integration of liquid-fuel power generation facilities to supply emergency capacity to the regional power grid.