ERC grants license to SEM-Calaca RES Corp. as Philippines’ 11th RES
The Energy Regulatory Commission (ERC) approved the application for a Retail Electricity Supplier’s (RES) License of SEM-Calaca RES Corporation (formerly DMCI Calaca Power Corp.) after due evaluation of its technical and financial capabilities. SEM-Calaca RES Corp. is now authorized to sell, broker, market or aggregate electricity to the end-users of a contestable market in a retail completion and open access regime. SEM-Calaca RES Corp. was registered with the Philippine Securities and Exchange Commission (SEC) in September 2009. It is a subsidiary of DMCI Holdings, Inc. (DMCI HI) which has investments in the following: (a) construction firm D.M. Consunji Inc., (b) Semirara Cement Corporation; (c) Semirara Mining Corporation (SMC). DMCI HI has also recently acquired the Calaca Power Plant through SEM-Calaca Power Corporation (SCPC).
SEM-Calaca RES Corp. will primarily give its attention on the marketing and selling the capacity of SCPC, the Calaca coal fired power plant that will source its fuel from the Semirara Mining Corporation. Premised on the fact that the fuel source is locally available, the customers of SEM-Calaca RES Corp. are assured of continuous power supply, and the benefit on cost savings on the freight cost of coal. Also, aside from SCPC, SEM-Calaca RES Corp. intends to procure from the WESM (Wholesale Electricity Spot Market), and other generators through a short term reciprocal bilateral contract, in case customer demand exceeds its available capacity, to ensure power supply even during scheduled and unscheduled down-times of the power plant.
To prove its financial capability and meet the credit standards set by the ERC, SEM-Calaca RES Corp. submitted a bank certification from Banco de Oro of its savings deposit of PhP6.2 Million and is allocating PhP1 Million seed money for its RES operations. Its affiliate company, SCPC, has issued a Secretary’s Certificate authorizing the company’s infusion of additional capital for SEM-Calaca RES Corp.’s electricity retail supply business. The new RES also proved its technical ability by setting up a business-to-business (B2B) system through the use of the NAVISION 5.0 System for the full computerization of financial and operations systems.
May 31, 2010