Wholesale aggregators get ERC license
Friday, December 15, 2006
The Energy Regulatory Commission (ERC) has approved the applications of two more companies which have been priming themselves as aggregator-suppliers of electricity upon the introduction of open access.
Those granted with license as Retail Electricity Suppliers are Aboitiz Energy Solutions, Inc. (AESI) and Trans-Asia Oil and Energy Development Corporation (TA Oil). The first one to be granted RES license was GNPower, which plans to develop a coal-fired power facility in Luzon.
The policy on open access meant that the end-consumers would already be given a choice of power suppliers depending on who they think would be able to meet their requirements.
The implementation will start with customers having usage of 1.0 megawatt and up and will be brought down gradually until it reaches the household level.
With the issuance of their Supplier’s Licenses, "AESI and TA Oil are now allowed to market their retail electricity supply business and to secure supply contracts with the contestable market," ERC chairman Rodolfo B. Albano has noted.
The conduct of business of the qualified retail electricity suppliers are governed by the terms and conditions set forth in their respective licenses.
Section 29 of the Electric Power Industry Reform Act (EPIRA) mandates all suppliers of electricity to the contestable market to secure a license from the regulator.
AESI, which is formerly the Aboitiz Power Solutions, Inc., is a wholly owned subsidiary of Aboitiz Equity Ventures. The company stated in its RES application that it intends to provide integrated customer solutions, with the end-goal of bringing down power rates for the customers.
TA Oil, on one hand, is affiliated with the Philippine Investment Management (PHINMA) group. The company is currently engaged in the supply of electricity to Guimaras through its own 3.4 MW diesel power plant, and to Holcim Cement in Bulacan through its affiliate TransAsia Power Generation Corp. (TAPGC) which owns and operates a 52 MW diesel power plant.
The timing as to when supply aggregation will finally be allowed depends largely on the timeline of the 70-percent privatization of the generation assets of the National Power Corporation.
The ERC will be undertaking new round of consultation with stakeholders this January on a proposed new schedule of open access.
The Power Sector Assets and Liabilities Management Corporation (PSALM) indicated that it will likely accomplish the prescribed divestment of the generating assets either 2008 or 2009, depending on the volume of supply contracts attached to the assets being sold. (MMV)
posted by philpower @ 10:07 AM,
