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.