AboitizPower ready for ‘open access’ regime

MANILA, Philippines – The Aboitiz group, the country’ biggest power producer in terms of installed capacity, is looking forward to the implementation of an “open access” regime in the energy sector meant to complete the industry’s shift to a market-driven from monopolistic.

AboitizPower, the holding company of the Aboitiz Group’s power businesses, expects to expand its market and diversify its customer base under the so-called Open Access regime in the energy sector.

“From a regulated, monopolistic industry, the power industry will complete its transformation into a competitive, market-driven one. In AboitizPower, we view this development as a chance to not only expand our markets, but to diversify our customer base,” Aboitiz Equity Ventures president and chief executive officer Erramon Aboitiz said at the holding firm’s annual stockholders’ meeting on Friday, May 25.

AboitizPower is ready for a more competitive business environment having prepared for it, the executive said.

“We await the implementation of the first phase of Open Access this coming June. We believe we have taken the necessary steps to prepare to compete from a position of leadership and strength,” Aboitiz said.

READ: Aboitiz: We’re afraid to compete with Napocor 

At the same time, he expressed hopes that contestable customers would be willing to sign long-term contracts with suppliers to make it easier for generation companies to build additional capacity.

“The only way it would work is if contestable customers are willing to sign long-term contracts,” Aboitiz said.

Under the so-called Open Access regime, large power users will be able to choose their own suppliers. Currently, they are limited to the supplier that holds the franchise over their areas.

Mandated under the Electric Power Industry Reform Act (Epira) of 2001, the Open-Access regime is expected to spur competition among players.

AboitizPower plans to invest up to P125 billion in the power sector — higher than the original plan of P85 billion — in the next 5 years, doubling its capacity.

The power unit contributed 62% of Aboitiz Equity’s P6.8 billion net income in the first quarter of 2013. – Rappler.com