Aboitiz unit, TA Oil get permits to retail electricity

The Energy Regulatory Commission (ERC) granted last Dec. 13 licenses as retail electricity suppliers (RES) to Aboitiz Energy Solutions Inc. (AESI) and Trans-Asia Oil and Energy Development Corp. (TA Oil).

This brings to three the number of such licenses issued by the ERC, with the first one being issued to GNPower.

"This is history unfolding before our very eyes. The entry of the new players foretell retail competition and open access," ERC chairman Rodolfo B. Albano Jr. said.

With the new license, AESI and TA Oil are now allowed to retail their electricity and to secure contracts with customers belonging to what is called contestable market.

Section 31 of the EPIRA defines contestable market as all electricity end-users with a monthly average peak demand of at least one megawatt for the preceding 12 months prior to the implementation of open access.

AESI (formerly Aboitiz Power Solutions, Inc.) is a wholly-owned subsidiary of Aboitiz Equity Ventures, the investment arm of the Aboitiz Family. It was formally organized and registered with the Securities and Exchange Commission (SEC) in 1998.

In its application, AESI states that it provides integrated customer solutions that reduce power costs, promote energy efficiency, and/or improve electrical system performance of its industrial, commercial, and electric utility customers. It also provides consultancy services, conducts engineering studies and designs, and/or manages power plants.

TA Oil is a subsidiary of Philippine Investment Management (Phinma) Inc. and was registered with the SEC in 1969. It is also controlled by Phinma under an existing management agreement.

TA Oil supplies electricity to Guimaras through its own 3.4-MW diesel power plant, and to Holcim Cement in Bulacan through its affiliate Trans-Asia Power Generation Corp. (TAPGC) which owns and operates a 52-MW diesel power plant.

"The dream to have a choice of supplier of electricity will soon be realized. Steps are being undertaken to pave the way for the realization of the ultimate goal of the EPIRA which is customer choice.  The benefits of quality service and value for money to be brought by competition will truly make the customer king," Albano said.