ERC grants RES License to Corenergy, Inc.
The Energy Regulatory Commission (ERC) awarded on 20 September 2016 the Retail Electricity Supplier (RES) License of Corenergy, Inc., in view of their substantial compliance with the technical, financial, and administrative requisites proving their capability to operate and sustain their retail supply business.
Corenergy is owned by Vivant Energy Corporation (VEC), a subsidiary of Vivant Corporation (VVT). Its primary purpose is to buy, source and obtain electricity from generating companies or from the wholesale electricity spot market (WESM) to sell, broker, market or aggregate electricity to the end-users in the contestable market.
Corenergy, registered with the Securities and Exchange Commission on 14 December 2012, will rely on the experience of its parent company’s role in managing businesses in the power generation. VEC will assist Corenergy to develop it into a viable RES by guiding the company in power supply contracting and energy trading. With the said technical knowledge transfer, the latter gets assurance that the necessary experience will be acquired to operate and manage the retail electricity business.
Corenergy aims to supply the power requirements of qualified industrial, manufacturing, and commercial customers located in Luzon and Visayas, and eventually in Mindanao once RCOA is declared there. It plans to sell an initial capacity of 100 MW in the first year, which would account for 2.35% market share of the total contestable customer demand.
Corenergy will procure power supply from a diverse mix of generation technology taking into account the dependability, costs implications, and location of these generation capacities. In order to guarantee its obligations to its customers, it will be contracting 50% of the requirement from coal and hydro generator facilities. For its peaking requirement, it will be sourcing out from bunker technology. It also plans to source a portion of its energy requirement from the WESM to take advantage of the relatively cheap annual weighted- average cost of electricity. Lastly, to mitigate the impact of the sudden spike of prices in the WESM due to unplanned outages of power plants, Corenergy will also contract with a peaking plant that will act as a hedge against any sharp increase of prices in the WESM.
Corenergy also intends to provide value-added services, such as quarterly newsletters on relevant information about the WESM, supply and demand conditions, and new technology to save on power consumption, and online billing statements for online payments. Corenergy is required to establish and operate its own website for the convenience of its customers.
“We welcome Corenergy, Inc. to the retail supply business. Its presence will provide consumers with more choices of electricity suppliers,” ERC Chairman and CEO Jose Vicente B. Salazar stated.