AESI and TA Oil - New Retail Electricity Supplier's License Grantees

Two new players, Aboitiz Energy Solutions, Inc. (AESI) and Trans-Asia Oil and Energy Development Corporation (TA Oil), were licensed by the Energy Regulatory Commission (ERC) last December 6, 2006 as Retail Electricity Suppliers (RES). Awarding ceremonies will be held on December 13, 2006, 9:00 a.m. at the ERC Board Room. The two companies follow GNPower, the first licensed RES, to be granted Supplier’s Licenses.

“This is history unfolding before our very eyes. The entry of the new players foretell retail competition and open access.” ERC Chairman Rodolfo B. Albano, Jr. said. With ERC’s issuance of the Supplier’s Licenses, AESI and TA Oil are now allowed to market their retail electricity supply business and to secure supply contracts with the contestable market. The terms and conditions attached to the said licenses as well as the relevant Rules and Regulations promulgated by the Commission shall govern their activities.

Section 29 of the Electric Power Industry Reform Act (EPIRA) requires all suppliers of electricity to the contestable market to secure a license from the ERC. Section 31 states that the contestable market will be composed initially of all electricity end-users with a monthly average peak demand of at least one megawatt (1 MW) for the preceding twelve (12) months prior to the implementation of open access.

AESI (formerly Aboitiz Power Solutions, Inc.) is a wholly owned subsidiary of Aboitiz Equity Ventures, the investment arm of the Aboitiz Family. It was formally organized and registered with the Securities and Exchange Commission (SEC) in 1998. In its application, AESI states that it provides integrated customer solutions that reduce power costs, promote energy efficiency, and/or improve electrical system performance of its industrial, commercial, and electric utility customers. It also provides consultancy services, conducts engineering studies and designs, and/or manages power plants.

TA Oil, on one hand, is a subsidiary of Philippine Investment Management (PHINMA), Inc. and was registered with the SEC in 1969. It is also controlled by PHINMA under an existing management agreement. TA Oil is currently engaged in the supply of electricity to Guimaras through its own 3.4 MW diesel power plant, and to Holcim Cement in Bulacan through its affiliate Trans-Asia Power Generation Corp. (TAPGC) which owns and operates a 52 MW diesel power plant.

“The dream to have a choice of supplier of electricity will soon be realized. Steps are being undertaken to pave the way for the realization of the ultimate goal of the EPIRA which is customer choice. The benefits of quality service and value for money to be brought by competition will truly make the customer king,” Chairman Albano declared.

December 12, 2006