Trans-Asia Oil and Energy Development Corporation of the Phinma Group has secured its license renewal for retail electricity supply (RES) having complied with the technical and financial standards set by the industry regulator.

With the company’s license renewal, Energy Regulatory Commission (ERC) chairperson Zenaida G. Cruz-Ducut noted that “TA Oil, as a RES license holder, can actively participate in the electricity market once open access and retail competition are in place.”

Being a retail electricity supplier, Trans-Asia is allowed to sell, broker, market or aggregate electricity to the end-users. Its RES license will have term of three years.

Presently, the company is among the registered trading participants at the Wholesale Electricity Spot Market (WESM) – such engagement of which has reportedly been bringing in revenue stream favorable for the company’s balance sheet.

Aside from being an electricity retail supplier, Trans-Asia was also granted a Wholesale Aggregator license, allowing it to cater to the demand of consumers which are allowed by law to aggregate their power supply needs – such as in the case of economic zone locators or villages.

The timing of both open access and supply aggregation will come upon the incursion of competitive play in the market.

In preparation for these policy ramifications, Trans-Asia also applied for Business Separation and Unbundling Plan (BSUP) in 2008, which was subsequently approved by the industry regulator.

“The BSUP will help ensure the structural and functional unbundling of the business activities of industry participants for the protection of consumer interests,” the ERC stressed.

The regulator opined that for competitive forces to truly work in a deregulated power industry, a strong regulatory framework must first be established.