GNPower Kauswagan Ltd. Co. (GNPK) has filed a petition with the Energy Regulatory Commission (ERC) for a P194-million refund for penalties imposed by the Independent Electricity Market Operator of the Philippines for alleged market rule violations.
The company, which operates a 552-megawatt coal-fired power plant in Lanao del Norte, is challenging fines issued by the market operator and the Philippine Electricity Market Corp (PEMC) on the “must-offer” rule. The rule requires power producers to offer all available capacity to the grid to ensure supply stability.
GNPK said the penalties were unjustly applied during periods when its units were under reserve shutdown or dispatched below their minimum stable load, or Pmin. The firm said operating below the threshold poses “technical constraints” that threaten the physical integrity of the plant.
The power producer said coal-fired units could not be ramped up or down as flexibly as other technologies. Forcing the plant to operate at fluctuating, low loads results in steam bypass and flame loss which can damage turbine blades, an issue the company said it is already experiencing, it said. GNPK officials said the company was constrained to operate at the lowest safe levels to minimize risks given low demand in the Mindanao region.
