Trans Asia allots 200MW for retailing

MANILA, Philippines - Listed Trans-Asia Oil and Energy Development Corp. has allotted 200 megawatts (MW) of its generating capacity for the retail electricity selling scheme.

This will allow Trans-Asia to tap the 900 companies that will start choosing their own electricity supplier next year.

“We are approaching the prospective contestable market, talk with them and make offers,” said Trans-Asia president Francisco Viray.

The listed upstream oil firm and power producer has allotted around 200 MW for potential new customers.

Last month, the Energy Regulatory Commission (ERC) accredited 909 companies that can benefit from the implementation of the retail competition and open access (RCOA).

Under the RCOA, customers can freely choose their electricity service provider.

This means that electricity end-users with an average monthly peak demand of one megawatt or the “contestable customers” can choose from whom to procure their electricity service.

Viray said Trans-Asia, in the next few years, can serve 560 MW of peak demand.

Through RCOA, retail electricity suppliers like Manila Electric Co. can tailor their supply packages to provide customers with the best value based on their power consumption profile and other preferences.

To date, the company owns and operates four plants with an aggregate production capacity of 186.4 megawatts (MW).

The bulk of energy sales came from contract customers, with excess output sold to the spot market.

Trans-Asia will raise up to P1.627 billion from a stock rights offering on Nov. 14 to 20.

Net proceeds from the offering will be used to partially finance its advances for subsequent conversion into equity and investment in a 54-MW wind energy project in San Lorenzo, Guimaras and the planned second 135-MW unit of the coal-fired power plant in Calaca, Batangas.

Other proceeds may be used to fund potential investments in other power project opportunities including privatizations of National Power Corp. and the Power Sector Assets and Liabilities Management Corp.

Trans-Asia, which is 54.8 percent owned by Phinma Corp., is also into oil exploration, cement manufacturing and coal trading.