First Gen unit renews license

MANILA, Philippines - The Energy Regulatory Commission (ERC) has renewed the registration of a Lopez-led power firm to operate as a wholesaler aggregator.

“First Gen Energy Solutions Inc. (FGES) was able to comply with the requirements specified under the Rules for the Registration of Wholesale Aggregators,” ERC said in a statement.

“The ERC, upon due evaluation, has found that FGES continues to possess the technical, managerial resource, and financial capabilities needed for the management and operation as a wholesale aggregator,” it added.

FGES was first issued a certificate of registration in May 2007. The renewed registration will be valid for the next five years or until May 2017.

A wholesale aggregator is an entity engaged in consolidating the demands of power distribution utilities like Manila Electric Co. for purchasing and reselling electricity on a group basis.

The wholesale aggregation scheme allows distribution utilities, especially small electric cooperatives, to obtain supply of power from the Wholesale Electricity Spot Market.

“The renewal of the certificate of registration as wholesale aggregator of FGES provides supply options to distribution utilities and helps ensure a stable supply of electricity,” said ERC chairperson Zenaida G. Cruz-Ducut.

FGES, a wholly-owned subsidiary of power generation firm First Gen Corp., is registered with the Securities and Exchange Commission in October 2006.

One of its primary purposes is to engage in the marketing, supply, purchase and sale of electricity. It can also develop, own, operate, rehabilitate and manage facilities used in for the marketing and supply of electricity.

Potential customers of FGES include electric cooperatives that have loads ranging from 10-55 megawatts presently covered by transition supply contracts with the National Power Corp.

FGES’ power procurement plan involves at least four power plants that use hydropower, natural gas and geothermal technologies with four other sources being studied, ERC said.

To date, there are 10 licensed wholesale aggregators in the country, with seven also licensed as retail electricity suppliers.