THE ENERGY Regulatory Commission (ERC) has issued licenses to three new retail electricity suppliers (RES) that are keen to participate in the market under new rules on retail competition and open access. One of these is FDC Retail Electricity Sales Corp. 

FDC RES is a unit of FDC Utilities, Inc., the company that holds the utility projects of the Filinvest Group and the independent power producer administrator for the 40-MW unified Leyte geothermal power plants.

“The ERC will constantly monitor the adherence… to the terms and conditions attached to the RES License, and to ensure their adherence to best business practices in retailing electricity services,” Jose Vicente B. Salazar, ERC chairman and chief executive officer, said in a statement.

ERC said the approval was issued based on the entities’ “capability to sustain their respective retail supply businesses, and their compliance with the technical, financial, and administrative requirements to obtain the subject license.”

The three licensed RES are subsidiaries of power companies that operate in Luzon and the Visayas, the areas where the retail competition rules are applicable. These retail electricity suppliers enhance the power of choice of contestable customers through the establishment of websites in order to provide updated information on average electricity prices and value-added services to ensure that contestable customers make informed choices according to the ERC.

Under rules on retail competition and open access, consumers with an average monthly peak demand of at least 750 kW kilowatts (kW) and 1 MW for the preceding 12 months may buy power through a licensed retail electricity supplier starting on June 26, 2016.

The purchasing requirement becomes mandatory on Dec. 26 for those consuming at least 1 MW, and on June 26, 2017 for those using at least 750 kW. The lowering of the threshold to cover end-users with an average monthly peak demand of at least 500 kW is set on June 26, 2018, subject to the review of the performance of the retail market by the ERC.

Source: BusinessWorld
By: Victor V. Saulon

*Minor changes applied