Philippines: Firm gets license to operate retail power-supply business

Philippines: Firm gets license to operate retail power-supply business

The Energy Regulatory Commission (ERC) has granted Corenergy Inc. a retail
electricity supplier (RES) license, after it complied with the technical,
financial and administrative requirements, proving the company's capability
to operate and sustain its retail-supply business.

'We welcome Corenergy Inc. to the retail-supply business. Its presence will
provide consumers with more choices of electricity suppliers,' ERC Chairman
Jose Vicente B. Salazar said on Thursday.

Corenergy is owned by Vivant Energy Corp. (VEC), a subsidiary of Vivant
Corp. Its primary purpose is to buy, source and obtain electricity from
generating companies or from the wholesale electricity spot market (WESM) to
sell, broker, market or aggregate electricity to the end-users in the
contestable market.

VEC will assist Corenergy to develop it into a viable RES by guiding the
company in power-supply contracting and energy trading. With the said
technical knowledge transfer, the latter gets assurance that the necessary
experience will be acquired to operate and manage the retail-electricity
business.

Corenergy aims to supply the power requirements of qualified industrial,
manufacturing and commercial customers located in Luzon and the Visayas,
and, eventually in Mindanao, once Retail Competition and Open Access (RCOA)
is declared there.

It plans to sell an initial capacity of 100 megawatt in the first year,
which would account for 2.35-percent market share of the total contestable
customer demand.

In order to guarantee its obligations to its customers, it will be
contracting 50 percent of the requirement from coal and hydrogenerator
facilities. For its peaking requirement, it will be sourcing out from bunker
technology. It also plans to source a portion of its energy requirement from
the WESM to take advantage of the relatively cheap annual weighted-average
cost of electricity.

Last, to mitigate the impact of the sudden spike of prices in the WESM due
to unplanned outages of power plants, Corenergy will also contract with a
peaking plant that will act as a hedge against any sharp increase of prices
in the WESM.

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Ref:
http://www.energycentral.com/news/firm-gets-license-operate-retail-power-sup
ply-business?did=39204498&utm_source=2016_10_16&utm_medium=eNL&utm_content=7
1965&utm_campaign=DAILY_NEWS

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com