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Climate advocacy groups are pressing the Department of Energy (DOE) to impose penalties on power generation companies that failed to comply with mandatory reporting requirements, arguing that stricter enforcement is needed as the Visayas grid continues to grapple with thin power reserves and recurring supply alerts.
The Philippine Movement for Climate Justice (PMCJ), SANLAKAS, and other allied groups staged a protest outside the DOE Field Office in Cebu City on Thursday, July 16 on Thursday, calling for the revocation of coal plant licenses and urging authorities to hold power generation companies accountable for continuing operations despite existing show-cause orders. They also pressed the government to accelerate the shift to renewable energy, arguing that cleaner energy sources can provide more affordable and equitable electricity for communities.
The appeal came after the DOE issued show-cause orders on July 7 to several generation companies for failing to submit annual self-assessment forms and other reportorial requirements intended to help regulators monitor plant reliability and maintain grid stability.
Calls For Stronger Enforcement
In a letter submitted to the DOE Visayas office in Cebu City, PMCJ said the DOE should not stop at issuing show-cause orders but should also implement the penalties provided under the department circular, particularly after the Visayas Grid experienced another yellow alert this month.
The group cited Section 9 of the circular, which states that non-submission of required reports may warrant administrative sanctions, including the non-issuance of a Certificate of Endorsement (COE) or the revocation of a generator’s Certificate of Compliance (COC).
Among the Cebu-based facilities issued show-cause orders were Cebu Energy Development Corp. Unit 3, and Therma Visayas Inc. Units 1 and 2.
During their protest, PMCJ Cebu Chapter coordinator Teodorico Navea questioned the recurring yellow alerts that have been linked to maintenance and repairs involving coal-fired power plants.
The group also criticized the government’s continued reliance on coal-fired generation, arguing that dependence on conventional fuel sources exposes consumers to volatile global fuel prices while delaying the transition to renewable energy.
DOE Sanctions
Earlier this month, the DOE said it would step up inspections of power generation facilities that failed to comply with the show-cause orders once the response period expires.
The agency earlier issued 174 show-cause orders to on-grid generation facilities and 29 to off-grid facilities for failing to submit mandatory reports on time.
Depending on the outcome of administrative proceedings and inspections, the DOE may suspend or revoke certificates of endorsement, recommend that the Energy Regulatory Commission cancel certificates of compliance, impose fines and administrative penalties, or blacklist erring companies.
“Accountability is not optional. These reportorial requirements exist to help ensure that generation companies remain capable of delivering the reliable electricity that Filipino consumers depend on every day,” Energy Secretary Sharon Garin said.
She added that stronger regulatory oversight is intended to improve operational accountability and help prevent avoidable power outages.
Thin Reserves
The renewed calls for stricter enforcement come as the Visayas power system continues to operate with limited reserve margins.
According to the National Grid Corporation of the Philippines (NGCP), the Visayas Grid was placed under a yellow alert on July 16 after available operating reserves fell below the required level, although overall electricity supply remained sufficient.
NGCP’s weekly outlook also projected razor-thin operating margins throughout the workweek, with available supply ranging from 2,736 megawatts (MW) to 2,907 MW against projected peak demand of 2,429 MW to 2,470 MW.
The narrowest operating margin was expected on July 17, when available capacity of 2,736 MW would leave only a 307-MW reserve after meeting projected peak demand.
The grid has been under sustained pressure in recent months due to unplanned outages at key generating facilities, including Therma Visayas Inc. and Palm Concepcion Power Corp., as well as transmission-related disruptions involving the Cebu-Iloilo Panay Energy Development Corp. line.
The DOE has previously identified aging power plants and limited operating reserves as recurring vulnerabilities in the Visayas grid, prompting calls to accelerate battery energy storage system projects and other reserve-enhancing measures.
The issue has also affected electricity consumers. Therma Visayas serves as the main supplier of Visayan Electric, which distributes power to around 400,000 residential customers. When two Therma Visayas units went offline on May 12, the utility resorted to purchasing emergency electricity from the Wholesale Electricity Spot Market, resulting in higher generation charges for consumers.
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https://newsinfo.inquirer.net/2262441/power-supply-troubles-affect-visayas-islands