San Buenaventura plant unable to get COC over incomplete requirements – ERC

clean coal

The power generation arm of Manila Electric Co. (Meralco) cannot acquire a certificate of compliance (COC) due to lack of needed requirements, according to the Energy Regulatory Commission (ERC).

The regulatory said that Meralco should complete all the necessary permits and documents for ERC to issue a COC.

“The Epira [Electric Power Industry Reform Act] has specified the necessary clearances that generation companies [gencos] must secure prior to the ERC’s issuance of COCs.  Unless all the documentary requirements have been fully complied with, only then we can issue the corresponding COC,” ERC Chairman Agnes VST Devanadera was quoted in a BusinessMirror report.

Generation companies can only commercially operate with an issued COC from the ERC, as well as required health, safety, and environmental clearances from the concerned agencies as mandated under EPIRA.

The targeted operational date of the P 56.2 billion coal plant was last September 15.

MGen President Rogelio Singson said on Monday that the company has completed all requirements.

“As far as we are concerned, we have complied with any deficiencies and the issue is now between NWRB and ERC,” Singson told reporters when sought for comment.

The coal-fired power plant will play a significant role in supplying the Luzon grid, which contributes 70 percent of the country’s gross domestic product.

“We welcome the entry of new power plants as these will augment and ensure the sustainability of power supply.  However, we will not allow the stakeholders to breach the law, and the rules that we have promulgated as they were designed to ensure that the consuming public’s interest is not compromised,” Devanadera said.

ERC added that the regulatory body will ensure that distribution utilities (DUs) will enter a power supply agreement (PSA) with a generation company with at least cost offer during the bidding.

“At the moment, we cannot as yet determine or confirm whether the proposed rate in the Meralco PSA adverted to was indeed the least cost.  But once the subject Meralco PSA application has been filed, the ERC will conduct a thorough evaluation to ensure that the proposed rate in the PSA is the least cost,” Devanadera said.

As of now, Meralco has successfully held two CSPs.

“We will require the submission of pertinent documents from the distribution utilities that will show proof that the CSP that they have undertaken in securing their power supply from the generation companies adhered to the ‘least cost’ principle,” Devanadera said.

 

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