ERC renews the RES license of GN Power Ltd. Co.
The Energy Regulatory Commission (ERC) approved on 15 June 2009 the application of GN Power Ltd. Co. (GNPower) for the renewal of its Retail Electricity Supplier’s license after determining that the applicant substantially complied with the technical, managerial resource and financial requirements set in ERC Resolution No. 3, series of 2006 entitled Guidelines for the Issuance of License to Retail Electricity Suppliers (RES). A RES is an entity authorized by the ERC to sell, broker, market or aggregate electricity to the end-users. A RES license has a life of three (3) years.
An applicant needs to secure a RES license from the ERC prior to engaging in the supply of electricity to the Contestable Market. As contrasted from a Captive Market, a Contestable Market refers to those end-users who have a choice of a supplier of electricity. Upon the initial implementation of open access and retail competition, all end-users with a monthly average peak demand of at least one megawatt (1MW) from the preceding twelve (12) months of consumption shall be allowed to be the contestable market. The customers of a distribution utility, a monopoly or the sole provider of electricity in a geographical area defined in a DU’s franchise, compose the Captive Market.
GNPower was the first among the nine (9) companies that applied for and were granted a RES license. The ERC issued the initial RES license to GNPower on 12 July 2006 which allowed it to start its marketing activities. In the evaluation of its renewal application, GNPower was to found by the ERC to have the continuing ability to, among others:(i) operate and manage an electricity supply business; (ii) set-up and operate a B2B (business to business) computer system; (iii) enter into any necessary access or interconnection arrangements or other required contracts with National Grid Corporation/National Transmission Corporation (NGCP/TRANSCO) and one or more distribution utilities (DUs); (iv) secure electricity generation supply; (v) meet transactional requirements with the Wholesale Electricity Spot Market Operator or its contractual obligations with any industry participant. GNPower is a limited partner of GNPower Mariveles Coal Plant Ltd. Co. (GMCP) which was also issued a RES license by the ERC on 05 December 2007. GNPower manifested that it will comply to the three (3) credit standards requirement once commercial operations of its power plant commences in 2012 since it is at that time that the obligation to supply power becomes effective. As partners, all agreements executed by GNPower with potential contestable consumers are intended to be assigned to GMCP as the generating company, thus, GNPower shall be GMCP’s marketing arm, but all future contracts shall be executed by GMCP.
Other ERC RES licensees include: (1) Aboitiz Energy Solutions, Inc., (2) Trans-Asia Oil and Energy Development Corp., (3) GNPower Mariveles Coal Plant Ltd. Co, (4) First Gen. Energy Solutions, Inc., (5) Masinloc Power Partners Co. Ltd.(6) Premier Energy Resources Corp., (7) TeaM (Philippines) Energy Corporation; and (8) Cabanatuan Electric Corporation.
June 23 , 2009