ABOITIZ Power Corp. (AboitizPower) said it will push its ‘gentailer’ (generator-retailer) strategy through the open access scheme to expand its retail power business even as it looks for opportunities to enhance and balance its energy portfolio.
Under the Retail Competition and Open Access (RCOA), users consuming an average of one megawatt and up may voluntarily look for their own retail electricity suppliers and customize their contracts according to dispatch, technology or power plant. RCOA is key provision of Republic Act 9136 or the Electric Power Industry Reform Act of 2001 or EPIRA.
The company is committed to expanding its power generation capacity to 4,000 megawatts (MW) by 2020 to help the nation address its power requirements, AboitizPower CEO Erramon I. Aboitiz said during the Aboitiz Equity Ventures, Inc. (AEV) and AboitizPower annual stockholders’ meeting and press briefing on Monday.
“Right now we’re close to 3,000 megawatts,” Aboitiz said.
He said the company strategy is to contract its capacity, so some of it has been pre-contracted. “Aside from selling to some utilities, we will pursue our goal of contracting to the contestable market.”
“Today our contestable market is close to 500 megawatts that we are selling, and by 2020 we expect that to be about 800 megawatts,” he added.
This contestable market consists of customers within a certain level of electricity consumption which are allowed to select their own power supplier.
AboitizPower has three retail electricity supplier (RES) subsidiaries–Aboitiz Energy Solutions, Inc. (AESI), Advent Energy Inc. (AdventEnergy), and Prism Energy Inc. (Prism Energy).
“We are targeting all types of customers but it is harder to grow because now, the Supreme Court has a temporary restraining order (TRO). We are not sure if the TRO affects everything in the rules that came out.
PEMC [Philippine Electricity Market Corporation] has stopped processing those who are 750-kilowatts to 1 megawatt,” Luis Miguel O. Aboitiz, AboitizPower COO for Corporate Business Group, said in an interview.
“The RES Association is seeking clarification. The RES association is hoping that the SC can clarify the issue.
But we don’t know when they will respond. For me, the sooner, the better for the industry to be clarified and people can make decisions,” he said, referring to RCOA implementation.
Meanwhile, Aboitiz said there are three plants coming in at the end of this year but the impact will still be in 2018. The “68.8 MW Manolo Fortich, Pagbilao 3 (our capacity is about 200 MW), Therma Visayas Inc. in the third quarter with 300 MW,” Aboitiz said.