Ayala forms unit to retail electricity

MANILA, Philippines – To further intensify its presence in the power industry, the Ayala Group has formed a subsidiary to engage in the retailing of electricity.

Philippine Integrated Energy Solution Inc. (PIESI) has recently been licensed as a retail electricity supplier (RES) by the Energy Regulatory Commission (ERC), enabling it to sell, broker, market or aggregate electricity to end-users as soon as open access kicks.

Open access allows big power users the choice or option where to source their power requirements. 

Under its license, PIESI, a private corporation registered with the Securities and Exchange Commission in September 2010, will engage in the purchase, supply and delivery of electricity; and provide a broad range of comprehensive energy solutions to include the design and implementation of energy efficiency/conservation projects, energy infrastructure outsourcing, district cooling, and energy risk mitigation/management, among others.

PIESI is owned by Ayala Land Inc. (ALI) , a wholly-owned subsidiary of Ayala Corp. It is managed, however, by the Ayala Property Management Corp., another ALI subsidiary. 

The Ayala Group has ventured into the power sector recently with the incorporation of its wholly-owned subsidiary Michigan Power Inc., which will invest in hydro and wind projects.

“ERC welcomes PIESI as the Philippines ’ 12th RES. More players in the electric power industry would lead to a healthy business competition in the open access and retail competition environment,” ERC chairperson Zenaida Ducut said.

Upon assessment of submitted documents, ERC said it found that PIESI met the vital requirements which include: ability to operate and manage an electric supply business and comply with ERC rules and regulations and ability to set up and operate an automated information exchange system (B2B communications and transactions).

Other requirements include the ability to enter into any necessary access or interconnection arrangements or other required contracts with one or more distribution utilities and the transmission and market operator and adequate staff and employee training appropriate for its retail supply operations. 

PIESI was organized to function mainly as a retail electricity supply unit. It intends to supply eligible commercial and industrial end-users within the Ayala Group in the open access and retail competition regime, which allows large power users to choose their own suppliers.

PIESI plans to supply the energy requirements of customers that total to 50 megawatts initially. 

“This market share will increase as PIESI acquires additional customers to serve and enter into new contracts with generators. PIESI will source its power from privatized National Power Corp. assets, bilateral contracts with independent power producer administrators, new generation companies, and through the wholesale electricity spot market,” the ERC said.