New RES player partners with Megaworld’s Richmonde Hotels

Richmonde-Hotel-Ortigas-and-Eastwood-Richmonde-Hotel

Mabuhay Energy Corporation (MECO), an emerging Retail Electricity Supplier (RES), has partnered with Richmonde Hotels, a hotel brand of Megaworld Corporation, to supply electricity to its two locations in Metro Manila.

After a competitive bidding process, the Retail Electricity Supply Contract got awarded to MECO and the two firms entered into a strategic partnership, wherein MECO would provide the hotel chain’s energy requirement for both its Eastwood and Ortigas locations.

MECO Chairman and CEO Sherwin Hing believes that the company was able to secure the partnership because of the very unique supply schemes it offered.

Hing pointed out that while the RES caters to the load factor of each client, MECO also customizes offers which is why it was able to offer a very competitive proposition.

“The model is pretty unique wherein we can offer tailor-fit [proposals] to clients depending on their usage and specific requirements,” Hing explained to Power Philippines.

Each commercial and industrial electricity customer has its own capacity and different energy consumption over a 24-hour period and thus, has its corresponding rates. For instance, power rates for business process outsourcing (BPO) companies would be different compared to that of malls. Also, electricity is usually cheaper at night, as there is less demand.

Richmonde’s Eastwood and Ortigas hotels, which are located close to major BPO hubs, had high occupancy during the lockdowns since they offered lower-than-usual rates to BPO companies for their employees’ accommodations. Given Richmonde’s lowered booking rates during the pandemic, Hing said that the hotel chain wanted to reduce costs.

“We are fortunately in a position wherein we offer savings, so that is what everyone is looking at in order to thrive in their business, especially during this crisis. With the different schemes that we offer, clients can really save, and it’s something that everyone wants,” Hing said.

Other RESs typically offer a fixed rate for their services, but Mabuhay Energy thought it best to set things differently, especially in light of the COVID-19 pandemic.

“What we offered is something that would allow them to recover their losses because of the pandemic. We wanted the customers to take advantage of lower WESM (Wholesale Electricity Spot Market) costs so that they could maximize their savings, said MECO Vice President and Head of Sales and Marketing Jacqueline Castillo.

“I think it is also important that what we offer is not just focused on the power bill savings of the customer but what value we can provide to help them grow their business as their partner,” she added.

Established in 2017, MECO is one of the RESs that operate under the Retail Competition and Open Access (RCOA) scheme, as stipulated in Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA). The RCOA, which intends to lower electricity prices by introducing competition among various players, is currently being mandated for consumers who have power demands of at least one megawatt and is voluntary for those consuming at least 750 kW, but less than 1 MW.

Since then, it has been supplying up to various clients, which other than Richmonde, include other real estate establishments, malls, cold storage facilities, food and manufacturing facilities.

 

Photo courtesy of Bacolod Lifestyle and Travel Guide/Megaworld.

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