The orders, issued on Oct. 14, directed the generation companies (GenCos) to submit verified explanations for their alleged failure to comply with the ERC's reliability performance standards.
In a statement released Wednesday, Nov. 4, the ERC said the enforcement actions were part of its continuing assessment of power plant outages amid concerns over recurring supply interruptions and high electricity prices, particularly in the Visayas and Mindanao.
The ERC did not identify the 13 generation companies covered by the latest show cause orders or specify whether generating units currently on forced outage in the Visayas were among those cited for alleged violations.
Another yellow alert
The ERC's announcement coincided with another yellow alert in the Visayas grid, highlighting continuing concerns over the reliability of power generation facilities in the region.
Yellow and red alerts have become recurring occurrences in the Visayas since May 12, as persistent supply instability continues to strain the regional grid, which relies partly on electricity imports from Luzon (250 megawatts) and Mindanao (450 MW) to meet demand.
In its 8 a.m. advisory Wednesday, National Grid Corp. of the Philippines (NGCP) placed the Visayas grid under yellow alert from 5 p.m. to 6 p.m., with available capacity of 2,799 MW against peak demand of 2,586 MW, leaving a reserve margin of just 213 MW.
NGCP identified the unavailability of two major coal-fired generating units operated by Therma Visayas Inc. (TVI) and Palm Concepcion Power Corp. (PCPC) as contributing factors to the yellow alert.
According to NGCP, 22 generating plants were on forced outage, while another 19 were operating at reduced or derated capacities, leaving a combined 695.3 MW of generating capacity unavailable to the grid.
Of the 22 plants on forced outage, five went offline in November, three in October, two in September, two in August, one in June and two in May. Three have been offline since 2025, one since 2024, two since 2023 and one since 2021.
A yellow alert is issued when the grid's operating margin is insufficient to meet the required contingency reserve, indicating that available power reserves may not be enough to cover the unexpected loss of a major generating unit.
The continuing outages underscore the challenges facing the Visayas grid, which has experienced recurring supply shortages and rotational brownouts since August.
ERC enforcement
The ERC said its initial evaluation found that generating units operated by the 13 companies had exceeded the prescribed Equivalent Unplanned Outage (EOU) limits under the commission's reliability performance rules.
The latest enforcement action follows an investigation launched on June 11, 2026, when the ERC issued Notices of Non-Compliance with Order to Comply and Explain against 25 generation companies, covering outage incidents involving 48 generating units.
The commission subsequently reviewed the companies' outage records, explanations and supporting documents to determine whether their generating units complied with allowable outage limits during the applicable assessment periods.
Based on its evaluation, the ERC issued 24 show cause orders against the 13 generation companies whose units were initially found to have exceeded the prescribed limits.
However, the commission clarified that its findings remain subject to further evaluation and due process.
Awaiting response
The ERC said it had yet to receive the verified explanations required under the latest orders.
Once the submissions are received, the commission will evaluate the additional documents and supporting records before resolving the cases in accordance with existing regulations.
The commission said appropriate penalties would be imposed if the proceedings establish violations of the prescribed reliability performance standards.
It emphasized that any sanctions must be supported by evidence and grounded in applicable regulatory rules.
The ERC said it would continue monitoring the reliability performance of generating facilities and prevailing grid conditions to ensure compliance with regulatory requirements.
It also reiterated its commitment to strengthening accountability among power generation companies, improving electricity supply reliability and protecting consumers from the impact of recurring power disruptions. —Ed: Corrie S. Narisma
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