Manila: The Department of Energy (DOE) has taken decisive action by issuing show cause orders to 175 power generation companies across the nation. The orders come as a response to the companies' failure to submit mandatory self-assessment forms, a critical measure as the agency works to address forced outages and prolonged derated capacities that have negatively impacted power consumers.
According to Philippines News Agency, DOE Secretary Sharon Garin, in an online briefing, revealed that 11 of these companies are situated in off-grid or remote areas not connected to the national grid. Garin emphasized the importance of these reports, stating, "We've been requesting reports from the gencos and the gencos didn't comply. But I have to emphasize this is just a start."
The issuance of show cause orders stems from various factors, notably the non-compliance with the minimum fuel stock requirement essential for efficiently servicing their customers. Garin stressed the urgency of enforcing rules, particularly in regions like Visayas, where consumers can ill afford power interruptions, especially in island off-grid areas.
Garin clarified that receiving a show cause order does not automatically imply guilt for the companies involved. Instead, it offers them an opportunity to explain their non-compliance. She warned, "If you cannot explain it properly, and it is shown in the records of DOE, ERC (Energy Regulatory Commission) or any other entities in the Department of Energy or in the energy family, then the ultimate penalty, even if you don't include any civil or civil cases, but it's more of like the cancellation of your permit to operate as a generation company."
The Visayas grid has been grappling with yellow and red alerts since mid-May, primarily due to forced outages at several power plants. Gabby Corpuz from DOE Legal Services noted that 60 to 80 gencos are based in Luzon, 40 in Mindanao, and the remainder in the Visayas. Corpuz highlighted the necessity for gencos to adhere to their operating commitments and technical specifications, adding, "And if they are deficient, they have to submit also an action plan."
Corpuz further explained that violators face the risk of receiving a cease-and-desist order, being removed from the genco registry, and disqualification from participating in future auction programs.
