The Energy Regulatory Commission (ERC) has issued Notices to Explain (NTEs) to twenty-two (22) generation companies (GenCos) over the persistent or frequent derating of their power facilities and units between January and April 2025.

The directive, sent on June 4, mandates the GenCos to clarify the causes of derated performance and submit action plans for restoring their units to full capacity. The ERC cited its authority under Resolution No. 17, Series of 2013, as amended by Resolution No. 21, Series of 2016, which governs the monitoring of the reliability performance of generating units and the transmission system.

Derating refers to a power plant or unit operating below its rated or registered capacity—typically due to technical issues, maintenance delays, fuel limitations, or other operational constraints. Persistent derating can impact overall power supply availability and affect electricity pricing.

“The Commission continues with its diligent monitoring of the reliability of our major power sources to ensure sufficiency of supply, which then affects affordability of power rates,” said ERC Chairperson and CEO Monalisa C. Dimalanta. “The persistent derated state of certain plants is concerning, and has prompted the Commission to formally seek an explanation from the GenCos.”

The GenCos and affected facilities include:

1. Excellent Energy Resource Inc. – EERI Combined-Cycle Power Plant Units 1 and 2
2. GNPower Dinginin Ltd. Co. – Dinginin Coal-Fired Power Plant Units 1 and 2
3. MORE Power Barge, Inc. – Power Barge 101 Diesel Power Plant Unit 3
4. Masinloc Power Partners Co., Ltd. – Masinloc Coal-Fired Power Plant Units 1, 2, and 3
5. Mariveles Power Generation Corporation – CFPP Units 2 and 4
6. Malita Power, Inc. – Malita Circulating Fluidized Bed CFPP Unit 2
7. Quezon Power (Philippines), Limited Co. – QPPL CFPP Unit 1
8. Sem-Calaca Power Corporation – Calaca CFPP Units 1 and 2
9. Southwest Luzon Power Generation Corporation – Circulating Fluidized Bed CFPP Units 1 and 2
10. Sual Power Inc. – Sual CFPP Units 1 and 2
11. South Premiere Power Corp. – Ilijan Combined-Cycle Power Plant Block 1 and 2
12. VS Gripal Power Corporation – Biomass Power Plant Unit 1
13. AP Renewables, Inc. – MakBan Geothermal Power Plant Units 1–4, 7–12; Tiwi GPP Units 2, 5, and 6
14. Energy Development Corporation – Multiple geothermal units in Mindanao, Mahanagdong, Malitbog, and Upper Mahiao
15. Angat Hydropower Corporation – Angat HEPP Main Unit 2 and Auxiliary Unit 5
16. First Gen Hydro Power Corporation – Pantabangan HEPP Units 1 and 2
17. Power Sector Assets and Liabilities Management Corporation (PSALM) – AGUS 5 HEPP Unit 1
18. SN Aboitiz Power-Magat, Inc. – Maris HEPP Units 1 and 2
19. Grass Gold Renewable Energy Corporation – Biomass Power Plant Unit 1
20. Green Future Innovations, Inc. – Biomass Power Plant Unit 1
21. Lamsan Power Corporation – Biomass Power Plant Unit 1
22. San Jose City I Power Corporation – Rice Husk-Fired Biomass Power Plant Units 1 and 2

The GenCos are required to submit their formal explanations and recovery plans within seven days of receiving the notice.

Are derated generating units undermining supply stability and pricing in the power market? Share your insights on the implications of ERC’s latest directive and the broader push for operational accountability.

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