Gatchalian calls for review on market share cap
Senator Sherwin Gatchalian is calling for a review on how market share limitation is measured under the Electric Power Industry Reform Act of 2001 (EPIRA), which is based on the installed generating capacity.
Gatchalian said this should be based on the actual or dependable capacity of the existing power generating plants.
?The law specifies installed generating capacity as the measure in computing market shares. However, this is not reflective of the true market power of a company since the installed capacity is different from the power generated and injected into the grid,? he said.
Market share limitations under the EPIRA prohibit generation companies from owning over 30 percent of the installed capacity of a grid and more than 25 percent of the installed capacity of the national grid.
While no company has breached the market share cap, the power industry is dominated by three major players which together corner nearly 60 percent of the market
These include First Gen Corp., SMC Global Power Holdings Inc. Aboitiz Power Corp.