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The Energy Regulatory Commission (ERC) has allowed Cabanatuan
Electric Corporation (Celcor) to engage in electricity trading upon
implementation of open access and retail competition in the power
sector, it announced in a statement Tuesday.
The regulatory body said it has awarded the
Philippines’ sixth retail electricity supplier (RES) license to
Celcor, the first private distribution utility granted the permit
“to sell, broker, market or aggregate electricity” to consumers.
“The ERC welcomes Celcor to the growing
community of investors who support the reforms in the electric power
industry in the Philippines. Electricity consumers will be happy to
note that their power to choose their source of power is now being
realized,” Alejandro Barin, ERC officer-in-charge, said.
Celcor’s franchise area covers Cabanatuan City
in the province of Nueva Ecija. The firm organized its RES business
to handle the buying and selling of electricity to the contestable
market, or those that will be allowed to choose their own power
supplier as part of the country’s power sector reform program,
within and outside its franchise area in Luzon.
Under the Electric Power Industry Reform Act of
2001 (Epira), the contestable market will be composed initially of
all electricity end-users with a monthly average peak demand of at
least one megawatt for the preceding twelve months prior to the
implementation of open access.
The required peak demand will eventually be
lowered over succeeding years until it finally reaches the household
level.
The government as well as the private sector is
banking on this scheme to spur competition in the once
state-controlled power sector, in hopes of driving down the
country’s exorbitant power rates deemed the second highest in the
region next only to Japan.
The other RES licensees from which consumers may
eventually choose for their power supply include GN Power Ltd. Co.,
Aboitiz Energy Solutions, Inc., Trans-Asia Oil and Energy
Development Corp., GNPower Mariveles Coal Plant Ltd. Co. and First
Gen Energy Solutions, Inc.
Distribution utilities, on the other hand, may
choose from wholesale aggregator licensees for their electricity
requirements.
So far, the ERC has granted nine such licenses
to AES Philippines Inc., Trans-Asia Oil and Energy Development
Corp., First Cabanatuan Ventures Corp., Aboitiz Energy Solutions
Inc.; First Gen Energy Solutions Inc., Angeles Power Inc., iN2Power
Inc., GN Power Ltd. Co. and TeaM (Philippines) Energy Corp.
-- Euan Paulo C. Añonuevo
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