Ayala unit sees steady flow of ‘contestable’ customers

AYALA-LED AC Energy, Inc. has started supplying electricity to customers with an average monthly consumption of at least 750-kilowatts (kW) for the past year, moving forward the government’s goal of cutting power prices through greater retail competition.

“We’re happy to note that there has been a steady flow of ‘phase 2’ customers who are now able to enjoy competitive rates from retail suppliers,” said Eric T. Francia, AC Energy president and chief executive officer, via e-mail.

He said the company was able to serve the 750-kW customers who are able to obtain a certificate of contestability from the Energy Regulatory Commission (ERC).

The second phase of the rules on retail competition and open access (RCOA) allows a retail electricity supplier (RES) to sell directly to “contestable” customers with a smaller power consumption.

The first phase limited the qualified customers to those using an average of at least 1-megawatt (MW) in the past year. Contestable customers have the power to buy electricity directly from a RES and away from a distribution utility, which previously served them as captive customers.

Provisions of the RCOA rules had been questioned before the Supreme Court by some sectors, including educational institutions, stalling the full implementation of the regulation, which is called for under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA).

The high court issued a temporary restraining order on the implementation of the crucial provisions of RCOA, including the lowering of the threshold to 750-kW and the issuance of new licenses to retail electricity suppliers.