The Energy Regulatory Commission (ERC) has approved the application of First Gen Energy Solutions Inc. (FGES) and AES Philippines to act as retail electricity supplier (RES) and wholesale aggregator, respectively.
With the approval of FGES’s application, the ERC has already awarded five RES licenses. The other companies with RES licenses are GN Power Ltd. Co., Aboitiz Energy Solutions Inc., Trans-Asia Oil and Energy Development Corp., and GN Power Mariveles Coal Plant Ltd. Co.
“There is growing confidence among investors in the electric power industry in the Philippines,” ERC chairman Rodolfo B. Albano, Jr. said. “The ultimate goal of providing consumers the power to choose their source of power is coming to a realization.”
An RES is a person or entity authorized by the ERC to sell, broker, market or aggregate electricity to the end-users.
FGES is a wholly-owned subsidiary of First Gen Corp., the power generation arm of the Lopezes. It is incorporated in the Philippines and registered with the Securities and Exchange Commission (SEC) on Nov. 24, 2006.
As an RES, FGES is engaged in the marketing, supply, delivery, purchase and sale of electricity. It is also involved in the development, design, construction, assembly, commissioning, ownership, operation, maintenance, rehabilitation and management of facilities used for its services.
FGES also provides facilities and services in relation to the supply and delivery of electricity such as energy efficiency programs.
AES Philippines Inc., on the other hand, will be the ninth wholesale aggregator approved by the ERC.
The other eight aggregators are Trans-Asia Oil and Energy Development Corp., First Cabanatuan Ventures Corp. (FCVC), Aboitiz Energy Solutions Inc. (AESI); First Gen Energy Solutions Inc., Angeles Power Inc. (API), iN2Power Inc., GN Power Ltd. Co., and TeaM (Philippines) Energy Corp.
A wholesale aggregator is a person or entity duly authorized by the ERC to sell electricity to a distribution utility (DU) or a consortium/group of DUs.
AES is a private corporation registered with the SEC on Dec. 19, 2007. It is primarily engaged in providing energy-related products and services.
AES is owned by AES Corp., a US-based company operating as power generator and power distributor in 28 countries.
“The ERC is glad to note the growing interest of investors in the Philippine electricity business. It is hoped that the growth of the industry will inspire the players to be competitive and move the electricity consumers towards a brighter future,” Albano said.