Tuesday, October 22, 2019

Meralco group’s market share shrinks after RCOA


October 22, 2019 | 12:09 am

THE RETAIL electricity supply business of Manila Electric Co. (Meralco) has significantly lost market share since rules on retail competition and open access (RCOA) were implemented, although the distribution utility has gained some ground in recent months, the latest report from the Philippine Electricity Market Corp. (PEMC) showed.
“Over the years, a significant drop in the Meralco group’s share was observed. From about 63% at the start of RCOA implementation in July 2013 billing month, its share was halved to 32% by the end of September 2018,” the company said in its report for the second quarter.
“Its share started to slightly increase thereafter that by the end of June 2019 billing month, the Meralco group’s share in terms of the number of registered Contestable Customers served, was recorded at about 35%,” said PEMC.
It said the increase in the share of the Meralco group was attributed to the registration of 16 new contestable customers — or those whose average monthly consumption in the past year reached one megawatt — during the first quarter of the year.
Also, 13 new contestable customers during the second quarter were added to Meralco’s client list.
PEMC also said during the first quarter, 18 contestable customers switched from Phinma Energy Corp. to suppliers under the Meralco group, and four contestable customers switched from suppliers under the Ayala group.
By the end of the June billing month, about 36% of all registrants were supplied by the Meralco group. This was followed by the Aboitiz group at a 21% share, the San Miguel group at 20% share, the Ayala group at 10% share and Phinma Energy at 2%.
Majority of the registered contestable customers were located within the Meralco franchise area.
PEMC’s report said changes were observed in the shares of participants, which were driven by several factors such as the participation of new suppliers, the registration of new contestable customers and their choice of supplier, and the switching of already registered contestable customers from one supplier to another.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

No comments:

Post a Comment