THE Energy Regulatory Commission (ERC) has issued 24 notices to explain to 22 power plant owners for the constant deration of their power facilities.
A deration means a plant does not produce what it earlier declared it should supply to its customers like distribution utilities, electric cooperatives or the spot market.
For example, a power plant can have a declared capacity level of 1,200 megawatts (MW), but due to deration, it actually only produces 800MW.
ERC chair Monalisa Dimalanta said these power plants include those that are owned by major industry players in geothermal, coal and other major plants.
Dimalanta clarified that what the commission wants is just an explanation in order to understand the reason behind the deration and the action plan to go back to the declared capacity levels.
Dimalanta said the deration can affect the overall supply in the market and once supply becomes thin, electricity prices go up, affecting consumers.
Meanwhile, another price increase looms next week as imported fuel prices soar in the first three trading days of this week.
But there were two more trading days left as of press time that will either reduce or further bloat the expected price adjustments for next week. (ABS-CBN News)
