ERC renews the RES license OF TA Oil

The Energy Regulatory Commission (ERC) approved on 14 December 2009 the renewal of the Retail Electricity Supplier (RES) license of Trans-Asia Oil & Energy Development Corporation TA Oil subsequent to its substantial compliance with technical and financial requirements.

TA Oil was initially awarded by the ERC with a RES license on 06 December 2006 and a Wholesale Aggregator license on 22 November 2006. It must be noted that the ERC approved on 25 March 2008 the Business Separation and Unbundling Plan (BSUP) filed by TA Oil docketed as ERC Case No. 2007-424 MC. The BSUP will help ensure the structural and functional unbundling of the business activities of industry participants for the protection of consumer interests.

TA Oil was registered with the Securities and Exchange Commission (SEC) on 08 September 1969 with primary purpose of engaging in electric power generation, distribution and serving, in addition to oil exploration within the Philippines and in other countries, among others. One of TA Oil’s secondary purposes is to purchase, sell supply or otherwise dispose of, light, heat and power of every kind and description.  PHINMA (Philippine Investment Management, Inc.) is the parent company of TA Oil. It is also controlled by PHINMA under an existing management agreement.

A RES is a person or entity authorized by the ERC to sell, broker, market or aggregate electricity to the end-users. A RES license has a term of three (3) years, renewable at the end of every term. Said license shall not be transferable and shall be valid for the stated terms unless otherwise revoked by the ERC.

“A strong regulatory framework for a competitive electricity industry had been established by the ERC, with the able support of all the stakeholders. TA Oil, as a RES license holder, can actively participate in the electricity market once open access and retail competition are in place,” ERC Chairperson Zenaida G. Cruz-Ducut said.

December 23 , 2009

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