Phinma Energy hit by intense retail competition
Earnings of Phinma Energy Corp. of the Del Rosario family crashed in the first half of 2017 due to intense competition in the retail electricity market.
It reported a net income of P298 million for the period, a 45 percent slide from P542 million last year.
The company said it was able to achieve a significant volume of customer migration due to the implementation of Retail Competition and Open Access (RCOA).
“Despite the temporary restraining order issued by the Supreme Court, Phima Energy was able to garner 14 percent Retail Electricity Supply (RES) market share,” it said.
However, Phinma Energy cited heightened competition and increasing penetration of must dispatch variable renewable energy (VRE), driving market prices of electricity downward.
And as a result of the TRO, the number of additional customers under RCOA were below targeted volumes.
“Under the foregoing environment in the industry, Phinma Energy said it is continuously working to manage supply portfolio costs to remain competitive and is hopeful that more contestable customers will be encouraged to participate voluntarily in RCOA,” Phinma Energy said.