(The Philippine Star) | Updated September 11, 2016 - 12:00am
MANILA, Philippines -
SPC Power Corp. wants to enter the business of retailing electricity to
end-users as the electricity market transitions into an open, retail market.
This is apart from
SPC’s traditional power generation business.
SPC’s board of
directors has approved the amendment of the second article of the corporation’s
Articles of Incorporation.
The board approval
allows the company to “engage in the business of selling, brokering, marketing,
or aggregating electricity to the end-users.” But this is still subject to
shareholders’ and regulatory approvals.
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, the power reform
law.
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.
RCOA officially began
on June 26, 2013. Since then, only contestable customers with at least one
megawatt (MW) demand are allowed to choose their own suppliers of electricity,
on a voluntary basis.
Mandatory
contestability for customers with peak demand of 1 MW will take effect on
December 26, 2016. For customers with at least 750 kilowatt (kW) demand,
mandatory contestability is scheduled on June 26, 2017.
So far, there are 400
registered contestable customers as of end-June 2016, based on latest data from
the Philippine Electricity Market Corp. (PEMC), the central registration body
(CRB) of the RCOA.
The Philippine
Electricity Market Corp. (PEMC) said the participation of contestable customers
reached 400 in the first half of 2016, up from 372 as of end-2015.
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