POWER distributor Manila Electric Co. (Meralco) is looking at the possibility of setting up a power aggregator company.

Alan Ortiz, Meralco board member, in an interview said setting a power aggregator is one of the initial projects being considered, particularly with the entry of new Meralco shareholders Philippine Long Distance Telephone Co. and San Miguel Corp. (SMC).

Ortiz said a proposal to set up an aggregator was proposed during their last board meeting. “We [the Meralco board] believe that the creation of an aggregator will help in expanding our services to customers,” he added.

“SMC has a lot of demand for electricity, as well as the supermarket and mall industry. In essence, there are a lot of possibilities [for this business] and we will be happy to cooperate in these possibilities,” he said.

Wholesale aggregators are those that are engaged in the consolidation of electric power demand of distribution utilities, including Meralco, for the purpose of purchasing and reselling electricity on a group basis.

The creation of wholesale aggregators is mandated under Republic Act 9136, or the Electric Power Industry Reform Act, to form part of the open access and retail competition sector of the industry.

Last year the Energy Regulatory Commission (ERC) approved the rules and the timetable of the implementation of the open access and retail competition.

The first phase of the open access will include those power consumers with 1 megawatt and above consumption, while the second phase will involve consumers with a consumption level of 750 kilowatts (kW).

The ERC added that the second phase should commence two years after the first phase.

At this level, aggregators must be allowed to supply electricity to end-users whose aggregate demand within a contiguous area is at least 750 kW.

Based on the same rules, the target is to tap the household level seven years after, but this will be determined based on the success of the first two phases of open access and retail competition.