AC Energy Holdings Inc. is making its debut in the retail energy business with a 50 megawatt supply target in the next three years with the full implementation of retail competition and open access (RCOA).
The Ayala arm has established itself as a retail electricity supplier (RES) after gaining the necessary license, AC Energy president and CEO John Eric Franca said.
“While we are small and I don’t think it would be significant, it’s worth mentioning we’re also going to be an active participant in retail electricity,” he said.
Although there are no intentions to grow aggressively in the business, the company targets to supply 50 MW at most in three years.
“We’re not going to be big in the near term. This is just to get to know the business, we want to start serving some key customers. It will be on an opportunistic, case to case basis,” Francia said.
AC Energy will complement existing RES firms of the Ayala Group under Ayala Land Inc.
Francia said that AC Energy will focus on the broader market outside the Ayala group, while Direct Power and Ecozone Power Management Inc – Ayala Land’s RES – focuses on its own captive market.
Under RCOA, end – users who are part of the contestable market – or contestable users – are given the chance to choose their power supplier. This is to foster competition in the generation and supply sector.
The mandatory contestability for customers with a peak demand of one MW was originally scheduled on December 26, 2016 but is subjected to changes following legal hurdles for the implementation of the RCOA scheme.