AYALA-LED Philippine Integrated Energy Solutions Inc. (PIESI) has been granted by the Energy Regulatory Commission (ERC) a retail electricity suppliers license that allows the company to sell, broker, market or aggregate electricity to end-users.
“ERC welcomes PIESI as the [country’s] 12th RES. More players in the electric power industry would lead to a healthy business competition in the open access and retail competition environment,” ERC chairperson Zenaida Ducut said.
Upon assessment of PIESI documents, ERC said the company met the vital requirements on its ability to operate and manage an electric supply business and comply with ERC rules and regulations, as well as its ability to set up and operate an automated information exchange system (business-to-business communications and transactions).
PIESI has also complied with other requirements such as its ability to enter into any necessary access or interconnection arrangements or other required contracts with one or more distribution utilities and the transmission and market operator and adequate staff and employee training appropriate for its retail supply operations.
PIESI was organized to function mainly as a retail electricity supply unit which targets to supply commercial and industrial end-users within the Ayala Corp. group of companies in the open access and retail competition regime. Open access allows large power users to choose their own suppliers.
PIESI plans to supply the energy requirements of customers with an initial 50 megawatts.
“This market share will increase as PIESI acquires additional customers to serve and enter into new contracts with generators. PIESI will source its power from privatized National Power Corp. assets, bilateral contracts with independent power producer administrators, new generation companies, and through the wholesale electricity spot market,” ERC said.
PIESI is a newly formed private corporation that was registered with the Securities and Exchange Commission in September last year. It is owned by Ayala Land Inc. a wholly owned subsidiary of Ayala Corp. It is managed by Ayala Property Management Corp.
The Ayala Group has entered the power sector recently with the incorporation of a wholly owned subsidiary Michigan Power Inc. which plans to invest in hydroelectric and wind projects.
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