Twenty-four show-cause orders target 13 generation companies as recurring outages expose vulnerabilities in the Mindanao power supply
DAVAO CITY (November 6) — RECURRING power supply disruptions in Mindanao are putting generation companies under increased regulatory scrutiny, with the Energy Regulatory Commission (ERC) issuing 24 Show Cause Orders (SCOs) against 13 power producers over alleged breaches of prescribed plant reliability standards.
The enforcement action raises questions about the reliability of generating facilities at a time when consumers continue to contend with power interruptions, tight electricity supply, and high electricity costs across Mindanao and the Visayas.
In a statement released Wednesday, November 4, the ERC said the orders, dated October 14, 2026, followed an evaluation that identified generating units exceeding allowable Equivalent Unplanned Outage (EOU) limits under its reliability performance rules.
The affected companies must submit verified explanations for their reported non-compliance. However, the ERC has yet to publicly identify the 13 companies and the specific generating units covered by the latest orders.
The orders do not automatically establish liability. The Commission said the companies must be given the opportunity to explain their circumstances and submit supporting evidence before any determination of violations or imposition of penalties.
Mindanao’s recurring supply constraints
The regulatory action comes against the backdrop of repeated power supply constraints in Mindanao, where the unavailability of major generating units has contributed to tight reserves and grid alerts.
On September 2, the Mindanao grid was placed under red alert after available generation capacity fell to 2,526 megawatts (MW), below the projected peak demand of 2,545 MW, leaving a 19-MW supply deficit.
The National Grid Corporation of the Philippines (NGCP) attributed the shortage partly to the unavailability of GNPower Kauswagan Units 1 and 2 and Therma South Unit 2.
Seven power plants were reportedly on forced outage, while seven others operated at reduced capacities, resulting in approximately 855.1 MW of unavailable generation capacity.
The scale of the unavailable capacity underscores how the simultaneous loss or reduced output of generating units can threaten supply security, even when the overall grid has sufficient installed capacity.
On September 14–18, the ERC and the Department of Energy (DOE) conducted inspections of several major facilities following successive red and yellow alerts in the Visayas and Mindanao grids.
The inspections covered GNPower Kauswagan Units 2 and 3, Therma Marine’s Mobile 1 and Mobile 2 units, and Therma South Units 1 and 2.
The ERC found GNPower Kauswagan Unit 2 undergoing testing and commissioning following turbine blade maintenance, while Unit 3 had resumed operations after repairs to a boiler tube leak.
Therma Marine, meanwhile, cited fuel supply constraints and prolonged adverse weather conditions that affected scheduled heavy fuel oil deliveries.
These findings illustrate the different operational challenges behind generating unit outages, from equipment failures and maintenance delays to fuel supply and weather-related disruptions.
From monitoring to accountability
The latest orders follow an earlier round of regulatory proceedings initiated on June 11, when the ERC issued Notices of Non-Compliance with Order to Comply and Explain (NNCOE) against 25 generation companies involving 48 generating units.
After reviewing the companies’ explanations, outage records, and supporting documents, the Commission identified facilities that warranted further proceedings for exceeding their allowable outage limits.
The ERC said it has yet to receive the verified responses required under the latest SCOs. These will be evaluated before the Commission determines whether violations have occurred and whether penalties are justified.
Under ERC Resolution No. 23, Series of 2026, adopted in July, revised reliability rules establish updated benchmarks for generating units based on historical operating and outage data from 2015 to 2024.
The rules also strengthen outage monitoring, maintenance planning, reporting requirements, and regulatory accountability.
For electricity consumers, however, the central concern goes beyond the number of regulatory orders issued. It is whether enforcement will translate into fewer unexpected plant shutdowns, more dependable generation, and greater protection against supply shortages and their impact on electricity costs.
The ERC said it would continue monitoring generating facilities and grid conditions, with enforcement measures intended to improve plant reliability and protect consumers.
The challenge now is to ensure that regulatory scrutiny produces measurable improvements in power plant performance—not merely another round of explanations after outages have already affected the grid.
