The Department of Energy (DOE) has proposed the conduct of a study that will look into whether or not allowing power plants implement a longer period of maintenance shutdowns could help generation facilities perform better and avoid more frequent outages.
DOE Secretary Raphael Lotilla said longer maintenance shutdowns have been practiced in other countries like Japan.
“Because (with longer maintenance shutdowns). they (generation companies) will be able … to really inspect the different parts of the plant. We’re looking as well into (that) and it’s not only from a purely punitive standpoint. Preventive maintenance is very important. Just like an aircraft, you have to have regular maintenance… (and give) enough time to carry out the maintenance,” Lotilla told reporters at the sidelines of a corporate event in Makati city last week.
Lotilla said historically, power plants are only allowed with limited scheduled maintenance days especially during periods of high temperatures and during elections.
The DOE chief said the Energy Regulatory Commission (ERC) is also keen on integrating heatwave in the parameters of deciding allowable plant maintenance outage days.
Lotilla said one of the current concerns is whether or not power plant companies “live up” to the standards of reliability that the ERC has imposed.
“There are metrics for this but…the existing power of the ERC to impose penalties is limited and therefore, it may not produce the kind of deterrent effect that we would like to have,” Lotilla said.
Under current ERC interim rules, pulverized coal plants are allowed for a combined forced and unforced unavailable days of 44.7; circulating fluidized bed (CFB) coal for 32.3 days; combined cycle gas plants at 20.2 days; gas turbine at 29.2 days; diesel at 19 days; geothermal at 19.7 days; hydro at 29.9; oil-fired thermal at 58.6 days and biomass plants at 39.7 days.
If generation companies exceed the allowable unavailable days, the ERC will issue notices of non-compliance with an order to explain. If found to be non-compliant, generation company face appropriate sanctions and penalties.
ERC as of Dec. 29, 2023, it has imposed approximately P60 million in penalties against generation companies for violation of the reliability index. But these were not enforced as refunds to customers but were instead deposited in the national treasury.
