Subsidiaries of Lopez-controlled power generation firm First Gen Corp. are facing P4 million in fines from the Philippine Electricity Market Corp. (PEMC) for noncompliance of certain electricity spot market requirements.
In a disclosure to the Philippine Stock Exchange, First Gen reported that PEMC has approved the imposition of an aggregate P4-million penalty on First Gas Power Corp. (FGPC) and FGP Corp. (FGP) for alleged noncompliance with the real time dispatch schedule of the Wholesale Electricity Spot Market (WESM) rules during various intervals covering the period 2007 to 2011. No further details were disclosed.
In a text message to reporters, First Gen explained that the noncompliance happened in 2008 when the Malampaya was under maintenance and plants were shifting to liquid fuel.
“We have made adjustments to the system to reflect real time dispatch. Note that it only happened in 2008 and not 2007 up to 2011,” the company clarified.
PEMC is the entity which governs and operates the WESM.
When sought for comment on the issue, Energy Secretary Jericho Petilla said that there have been quite a few firms that have been fined for noncompliance of the aforementioned WESM rule.
“However, some of them are appealing and have various reasons. I don’t have the list though,” he added.