Power generation companies that drag out maintenance shutdowns or trigger unexpected outages will now face stiff daily penalties, as the Energy Regulatory Commission (ERC) finalized a new framework capping annual unplanned downtime.

In a resolution, the ERC said generation companies must not exceed the allowable number of unplanned outage days. Otherwise, they will face compounding penalties of up to ₱200,000 a day.

Each type of power plant has been allocated a specific annual limit for unplanned outage days. Under the guidelines, biomass plants are allowed up to 32.06 days, gas turbines 26.92 days, diesel plants 21.09 days, and geothermal plants 22.98 days.

Tighter limits were set for conventional hydro at 12.72 days, pumped-storage hydro at 18.98 days, and run-of-river hydro at 12.03 days, while oil-fired thermal plants received the highest allowance of up to 37.03 days.

ERC Chairperson Francis Saturnino Juan said that these revisions are intended to prevent prolonged power plant outages, which strain the grid.

“These revised rules encourage generation companies to strengthen preventive maintenance, improve operational performance, and minimize unplanned outages that can contribute to supply shortages and higher electricity costs,” Juan said.

By mandating consistent performance reporting and authorizing the ERC to publish annual technology-specific reliability data, the revised rules significantly enhance transparency. This ensures that regulators, operators, investors, and consumers can closely track plant performance and strategically plan for future energy demands.