A unit of Consunji group-led Semirara Mining and Power Corp. is set to enter the retail electricity market, which is seen to offer ample opportunities despite tough competition.
Sem-Calaca RES Corp. (SCRC) is working on possible contracts after receiving its license to operate from the Energy Regulatory Commission (ERC) in November last year.
“We are not an early entrant but we’re optimistic about our prospects. The unserved market is sizable and we are well positioned to compete despite the stiff market situation,” said Semirara president and chief operating officer Victor Consunji.
A retail electricity supplier (RES) refers to any person or entity authorized to sell, broker, market or aggregate electricity to the “contestable” market which consists of a group of end-users who have an average peak demand of one megawatt (MW) for 12 months before the start of retail competition.
To develop its client base, SCRC has been aggressively pitching to customers qualified under current ERC regulations.
As of June, the Competitive Retail Electricity Market (CREM) said there were 1,377 contestable customers in Luzon and 184 in Visayas with total demand of about 3,830 megawatts (MW). About 713 contestable customers with total demand of about 1,780 MW are still getting their power requirements from their distribution utilities.
The ERC previously set for Feb. 26 this year the deadline for contestable customers with an average monthly peak demand of at least 1MW to source power from a licensed retail electricity supplier.