MANILA -- The Energy Regulatory Commission 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 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 indusry 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.

MERALCO NOW SEES POTENTIAL REDUCTION FOR JUNE

After thinking last Monday that it needs to raise the overall rate, Meralco now sees a potential reduction, following the release of data from the Independent Electricity Market Operator that the overall power prices went down by more than P0.50/kwh in May compared to April.

Meralco Utility Economics Head Larry Fernandez says there is now the possibility of flat or decreasing rate for June because of lower spot market prices.

But since only around 20% of its supply comes from the spot market, Meralco will still need to wait for the billing of other suppliers to determine the final billing.

Earlier, Meralco said there is an increase in the reserve market which translates to around P0.05/kwh hike in the transmission charge.

ANOTHER HIKE LOOMS

Meanwhile, another price increase looms next week as imported fuel prices soar in the first 3 trading days of this week.

So far:

Diesel        P0.58/L ⬆️

Gasoline    P0.25/L ⬆️

Kerosene   P0.29/L ⬆️ 

But there are two more trading days left that will either reduce or further bloat the expected price adjustments for next week.