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AES Philippines Inc. has gained a license to sell electricity to
distribution utilities after the Energy Regulatory Commission (ERC)
approved the same.
In a statement, the ERC said that it has granted
AES a wholesale aggregator license. It is owned by US-based AES
Corp., which operates in 28 countries.
The company, through its local wholly-owned
subsidiary Masinloc Power Partners Co. Ltd (MPPC), won the bidding
for the Masinloc plant in a state auction held last July with an
offer of $930 million
AES is the ninth whole aggregator licensee
approved by the ERC after Trans-Asia Oil and Energy Development
Corp. (TA Oil), First Cabanatuan Ventures Corp., Aboitiz Energy
Solutions Inc., First Gen Energy Solutions Inc. (FGES), Angeles
Power Inc., iN2Power Inc., GN Power Ltd. Co., and TeaM Energy Corp.
Apart from AES, the ERC also approved the
application of FGES as a retail electricity supplier, which will
allow it “to sell, broker, market or aggregate electricity” to
consumers.
FGES is a wholly-owned subsidiary of
Lopez-controlled First Gen Corp., the country’s largest
independent power producer, and is engaged in electricity trading as
well as related logistics, construction and development services.
The company is the fifth retail licensee after
the regulator granted the same to GN Power, Aboitiz Energy, TA Oil,
and GN Power Mariveles Coal Plant Ltd. Co.
With the entry of AES and FGES in electricity
trading, competition in the power sector is expected to increase,
which is what the government is banking on to lower the country’s
power rates, considered one of the highest in Asia.
“The increasing number of players in
electricity industry is another welcome development for it [the
industry] to become more competitive,” Rodolfo B. Albano Jr., ERC
chairman, said.
-- Euan Paulo C. Añonuevo
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