PCC approves Meralco-Marubeni, BCDA joint venture
MANILA, Philippines – The Philippine Competition Commission (PCC) approved the joint venture between the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Company (Meralco) and Japanese firm Marubeni Corporation.
The PCC, in its decision issued last June 25, said the joint venture is unlikely to cause any substantial lessening of competition in the retail electricity supply market in New Clark City as well as the electricity distribution utility market.
Signed back in April, the 25-year joint venture seeks to distribute power to locators and facilities in New Clark City. The Meralco-Marubeni consortium will take a 90% equity stake, while the BCDA will hold the remaining 10%.
Despite this deal, the PCC noted that potential "contestable customers" would still be able to choose their own power provider, particularly agro-industrial and institutional locators.
New Clark City locators which will have an average monthly consumption of at least 750 kilowatts (kW) can participate in an Electricity Open Access Scheme and choose their own electricity supplier, as mandated by the Department of Energy (DOE).
"These retail power suppliers from anywhere in the country may compete for the would-be qualified New Clark City locators in need of the supply," the PCC said.
The commission also said the DOE would have to make sure that other distribution utilities and electric cooperatives can still compete with the joint venture.
Joining the Meralco-Marubeni consortium are Japanese power distributors Kansai Electric Power Company and Chubu Electric Power Company. – Rappler.com