ERC issues license to the first Wholesale Aggregator

From left to right: Commissioner Rauf A. Tan, Dr. Francisco L. Viray, Executive Vice-President of Trans-Asia Oil and Energy Corp., Commissioner Maria Teresa R. Castañeda and Chairman Rodolfo B. Albano, Jr.

The Energy Regulatory Commission (ERC) approved the application of Trans Asia Oil and Energy Development Corporation (TA Oil) for a Certificate of Registration as a Wholesale Aggregator giving the company the distinction as the very first such licensee in the country.

“This is a breakthrough in the electricity industry. This step is an affirmation that the electric industry is moving towards the competitive regime envisioned in the Electric Power Industry Reform Act (EPIRA),” ERC Chairman and CEO Rodolfo B. Albano, Jr. clarified.

Wholesale Aggregators are persons or entities who are engaged in the consolidation of electric power demand of Distribution Utilities (DUs) for the purpose of purchasing and reselling electricity on a group basis. Section 30, 5th paragraph of the EPIRA provides that the ERC may authorize other similar entities to become eligible as members, either directly or indirectly, of the wholesale electricity spot market (WESM).

TA Oil formally entered the electric power industry in 1996 through the acquisition of 50% ownership of Trans-Asia Power Generation Corporation (TAPGC) and is currently engaged in the supply of electricity to Guimaras through its own 3.4 MW diesel power plant under a ten (10) year co-operation period which started in the year 2005. TA Oil is targeting to contract and supply electricity to the DUs in Luzon and Visayas. In its application, TA Oil stated that it has organized an Electricity Trading and Marketing group within the company to handle the electricity trading activities of its existing and planned generation plant acquisitions. Under the said group is a Wholesale Aggregator unit responsible for electricity supply to the DUs. TA Oil is run by Mr. Antonio V. Del Rosario, [former Deputy Minister for Energy Development and Executive Director of the Philippine National Oil Company (PNOC)] Chief Executive Officer and Dr. Francisco L. Viray, [former Secretary of the Department of Energy and President of the National Power Corporation (NPC)] Executive Vice President.

The Certificate of Registration (COR) issued by the ERC to TA Oil will have a term of five (5) years and renewable at the end of every term. The COR is granted subject to
the continuing compliance of TA Oil with the applicable Rules, such as the Wholesale Electricity Spot Market (WESM) Rules and the Philippine Grid and Distribution Code (PGDC), and the approved Terms and Conditions.

“The landscape of the electric power industry is evolving into a competitive playing field. The ERC will pursue to the fullest the mandate of Section 45 of the EPIRA to promote competition, encourage market development and ensure customer choice,” Chairman Albano concluded.

December 12, 2006