Sem-Calaca RES Corporation (SCRC), the retail electricity arm of integrated energy company Semirara Mining and Power Corporation (SMPC), has sealed a 4-megawatt retail supply contract with a Luzon-based steel manufacturing firm.
The supply contract commenced last September and will last for 15 months.
“We expect a challenging 2019 for the local power industry because of increasing power supply in the market and the growing competition for power contracts. With the increasing contestable customers switching to retail suppliers, the RES market could be a bright spot for SMPC,” said SMPC president and chief operating officer Victor A. Consunji.
“We are in talks with a number of contestable clients for an aggregate volume of 150 MW. The negotiations are in various stages of negotiation,” added Consunji.
A retail electricity supplier (RES) refers to any person or entity authorized to sell, broker, market or aggregate electricity to the “contestable” market.
Effective January 2018, the threshold for the 12- month average peak demand to qualify to become a contestable customer was lowered from 1 MW to 750 kW.
“We believe SCRC is capable of competing with the other RES players. We can provide customers with customized solutions to help manage their electricity costs,” added Consunji.
SCRC offers contestable power consumers with affordable electricity prices by securing sufficient supply from affiliate power plants SCPC and Southwest Luzon Power Generation Corporation, other independent power generators, or from the Wholesale Electricity Spot Market.
Semirara Mining and Power Corporation (SCC) was incorporated on February 26, 1980 to explore, develop, and mine the coal resources in Semirara Island, Caluya, Antique through a coal operating contract with the Department of Energy in 1977 (amended 1981).
On August 18, 2014, the Securities and Exchange Commission approved the change in corporate name to include the word “power” in line with the forward integration of the Company’s business as a coal supplier or producer to power generation through its wholly-owned subsidiaries.