At least 40 power generation companies are facing suspension for continuing to snub show-cause orders (SCOs) issued by the Department of Energy (DOE) for failing to comply with performance standards and contracted capacities.
Energy Secretary Sharon Garin did not name the erring firms but clarified that most of them operate small diesel-fired power plants, probably including Sunwest Water & Electricity Co. (SUWECO).
The companies failed to submit mandatory self-assessment forms, prompting the issuance of the SCOs. They are also being asked to explain power outages, reduced generation, and failure to deliver capacities committed under contract to the grid.
The DOE move is pursuant to Department Circular No. DC2026-02-0006 providing a policy of accountability of entities engaged in power generation to ensure sufficient, reliable, affordable, and secure supply of energy in the country.
Under the circular, a genco found to have committed a prima facie violation may be issued an SCO and placed under strict compliance monitoring.
For the first offense, the company will receive a stern warning and be required to comply with the DOE’s monitoring requirements.
Failure to submit required reports or documents within the prescribed period may constitute a second or third offense, with the case to be referred to the Energy Regulatory Commission (ERC) for appropriate action.
For the third offense, the DOE could suspend the certificate of endorsement it issued to the genco, which may also be endorsed for blacklisting and revocation of its compliance certificate.
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The DOE is also set to auction the development of “green energy” projects in off-grid islands like Catanduanes in a bid to replace expensive diesel power plants with renewable energy and battery storage systems.
The strategy also seeks to improve energy security in the islands and reduce the Universal Charge for Missionary Electrification (UCME) paid by electricity consumers all over the country.
These islands rely almost entirely on diesel gensets, with the true cost of generation at an average of P18 per kilowatt-hour and as high as P62 per kWh due to the high cost of transporting fuel.
The DOE initiative plans to replace diesel power with solar photovoltaic systems paired with battery energy storage systems (BESS) through the competitive Green Energy Auction (GEA).
However attractive and appropriate the DOE move would be for our province, Catanduanes will not be among the off-grid islands being considered for the auction which is dedicated only to those served by the National Power Corporation.
Consumers suffering from high power rates due to expensive electricity delivered by SUWECO and Isla Dagyab would have to wait for the new power provider to be determined by FICELCO’s Competitive Selection Process (CSP).
Let’s hope the winner includes a sizeable solar PV farm and BESS in its proposal.
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THE SCHOOL PAPER. A school boy is assigned a paper on childbirth and asks his parents, “How was I born?”
“Well honey…,” says his slightly prudish mother, “the stork brought you in.”
“Oh,” says the boy. “Well, how did you and daddy get born?
“Oh, the stork brought us, too.”
“Well, how were grandpa and grandma born?” he persists.
“Well darling, the stork brought them too!” says his mother, by now starting to squirm a little.
Several days later, the boy hands in his paper to the teacher.
It begins, “This report has been very difficult to write because there hasn’t been a natural childbirth in my family for three generations.”