NEWS

By Elijah Felice Rosales

The 20,000-seater stadium in New Clark City, one of the main venues for the 30th Southeast Asian Games this November, is seen in this June 1, 2019, BusinessMirror file photo, nearly finished except for some minor sprucing up. The Philippine Competition Commission (PCC) has approved the joint venture of the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Co. (Meralco) and its Japanese partners for the development of a power distribution system in what is slated to become the first smart, green and sustainable metropolis in the Philippines.

THE Philippine Competition Commission (PCC) has approved the joint venture of the Bases Conversion and Development Authority (BCDA) and the consortium of Manila Electric Co. (Meralco) and its Japanese partners for the development of a power distribution system in New Clark City. In a commission decision last week, the PCC authorized the BCDA and the Meralco-Marubeni Consortium to carry out its project. It said the transaction will not result in a substantial lessening of competition in the retail electricity supply market within New Clark City and the distribution utility market of generated power through a supply deal in the Luzon and Visayas grids.

The PCC argued New Clark City will give rise to establishments or units that are qualified to choose their own retail electricity supplier, not necessarily the joint-venture firm. Given the development of New Clark City, the PCC sees an influx of locators, particularly agro-industrial and institutional clients, to qualify as contestable customers whose average monthly consumption reach at least 750 kilowatts.

As such, they can be deemed by the Department of Energy (DOE) as qualified to participate in its electricity open access scheme, under which they will be given the right to choose their own retail electricity supplier.

These power providers can come from anywhere in the country and can compete for qualified New Clark City locators in need of the supply. They should also be provided with a level playing field under the DOE’s competitive selection process (CSP).

The competition body is of the view the CSP will ensure retail electricity in New Clark City is competitive and that it will prevent the joint venture firm from dominating the market.

The Meralco-Marubeni Consortium is composed of Meralco, Japanese conglomerate Marubeni Corp. and power distributors Kansai Electric Power Co. and Chubu Electric Power Co. Marubeni; its consolidated subsidiaries are engaged in the handling of products and provision of services in the areas of import and export.

New Clark City, a 9,450-hectare area located 100 kilometers north of Metro Manila, is slated to become the first smart, green and sustainable metropolis in the Philippines.

The National Government Administrative Center will be situated there. The NGAC will house the backup offices of several government agencies to ensure their operations are uninterrupted in times of man-made and natural calamities.

The NGAC will also feature the sports facilities to be used for the country’s hosting of the 2019 Southeast Asian Games in November.

The construction of New Clark City is in line with the Duterte administration’s economic policy of spreading growth to the regions. By building infrastructure outside of Metro Manila, the government seeks to attract investments and create jobs in rural areas, which, in theory, should decongest the capital.

Source: Business Mirror