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Friday, May 3, 2024

Compensation formula for ILP firms reviewed

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The Energy Regulatory Commission has proposed the inclusion of a standby cost for interruptible load participants, who may be asked to de-load from the grid if needed, especially in anticipation of the tight supply during the dry months.

The ERC said in a draft resolution that based on the initial power outlook prepared by grid operator National Grid Corporation of the Philippines, there was a possibility of tight supply conditions resulting in yellow and red alerts in Luzon and Visayas during the dry months.

The regulator said the Energy Department proposed in December last year actions to mitigate the effects of the foreseen tight supply conditions. These include the review of the current ILP compensation to entice more participation and correspondingly stabilize power supply.

The ILP is a program established by the department and the ERC to help mitigate the energy supply deficiencies. Companies with stand-by generation capacities who participate in the ILP will be compensated under the program.

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