Danessa Rivera (The Philippine Star)
- January 22, 2017 - 12:00am
MANILA, Philippines - SPC Power
Corp. is expanding its business from power generation to retailing electricity
in line with its participation in the open market scheme.
In a disclosure to the Philippine
Stock Exchange yesterday, SPC said it has received approval from the Securities
and Exchange Commission for its amended Articles of Incorporation.
The amendment allows the company to
“engage in the business of selling, brokering, marketing, or aggregating
electricity to the end-users,” which was green-lit by SPC’s shareholders and
endorsed by the Department of Energy.
With regulatory approvals, SPC will
not be able to retail electricity to large power end-users, on top of its
traditional power generation business.
Power generation companies are
allowed to become retail electricity suppliers (RES), which provide contestable
customers the power of choice in their electricity provider under the retail
competition and open access (RCOA) scheme, which is mandated by the Electric
Power Industry Reform Act (EPIRA) of 2001.
Contestable customers refer to the
electricity end-user who is part of the “contestable market” or electricity
end-users who have a choice of a supplier of electricity.
When RCOA officially started on June
26, 2013, contestable customers with at least one megawatt (MW) demand are
allowed to choose their own suppliers of electricity, on a voluntary basis.
Mandatory contestability is
scheduled on Feb. 26, 2017, but the DOE is reviewing the provision to make it
optional.
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