ERC Invites Comments on the Revised Guidelines for GenCos' Financial Standards
The Energy Regulatory Commission (ERC), in a Notice issued in connection with ERC Case No. 2019-001 RM in re: Proposed Revised Guidelines for the Financial Standards of Generation Companies, sought the electric power industry participants' comments on the 2nd draft of the subject guidelines. The proposed revisions to the guidelines seeks to update the 2005 promulgated guidelines to reflect the prevailing economic conditions and developments in the country's electric power industry.
"The Commission takes cognizance of the fact that we need to update our Rules and Guidelines to make them responsive and suitable to the prevailing conditions in the electric power industry. A lot of developments have taken place in the power industry and the economic conditions now and fourteen (14) years ago, when the Guidelines for the GenCos' Financial Standards was promulgated, have a very huge disparity. With the revised Guidelines we wanted to ensure that GenCos are financially capable to operate and produce sustainable electricity", ERC Chairperson and CEO Agnes VST Devanadera averred.
The Revised Financial Guidelines will set out the minimum financial capability standards to ensure that GenCos meet these standards in order to protect the public interest pursuant to the Electric Power Industry Reform Act (EPIRA) of 2001 and the Philippine Grid Code (PGC). The subject Guidelines shall apply to all GenCos, including but not limited to: (i) Entities which own and operate a Generation Facility; (ii) Entities which own a Generation Facility that is operated by another entity under any management contract; (iii) Entities which hold a Capital Lease on generation assets; and (iv) Entities which hold an Operating Lease on generation assets.
The subject Guidelines also sets forth the documents that needs to be submitted for new and renewal of Certificate of Compliance (COC) applications, including the annual submission for the duration of the COC.
Comments on the Second (2nd) draft of the "Revised Guidelines for the Financial Standards of Generation Companies are advised to be sent both in hard and soft via email at licensing@erc.gov.ph.
We urge all interested parties to submit their comments on the "Revised Financial Guidelines" on or before 31 July 2020 so that any issues and inputs may be considered in the final version of the guidelines to be promulgated by the Commission", said ERC Chairperson and CEO Agnes VST Devanadera.
