James Lang, Jon Castillo and Paul Diaz ruled the Urban Extreme Sports Challenge held during the Red Horse Beer Pambansang Muziklaban grand finals recently in Pasay City.

Plant officials of beer market leader San Miguel Brewery Inc. (SMB) proudly show the awards they won in the recently held Don Emilio Abello Energy Efficiency Awards (DEAEEA) 2012.

Media Release : SMB Benefits From Open Access in Power Industry
July 3, 2013

San Miguel Brewery Inc. has been registered as the first “contestable customer” when the Philippine Electricity Market Corp. (PEMC) launched the commercial implementation of the retail competition and open access (RCOA) in June.

In his remarks, SMB President Roberto N. Huang hailed the program, saying it was a breath of fresh air for companies such as San Miguel Brewery given its heavy electricity requirement. He described the RCOA as a potential catalyst for the country’s further growth.

“We cannot help but be optimistic about the impact of RCOA in the long run as it promotes competition among retail electricity suppliers,” Mr. Huang told the audience when he received the commemorative token from the PEMC, the central registration body for RCOA.

“It provides another compelling reason why investors should put up businesses here in the country since the policy could help lower the cost of power,” he continued. “With more competition in the field, the level of service would surely improve as players would want to get as many customers as it could.”

As a contestable customer, SMB could source electricity from a preferred supplier rather than depend on the supplier from the distribution unit which provides power to the company. In SMB’s case, it picked San Miguel Electricity Corp. as its supplier.

The implementation of the RCOA benefits companies such as SMB because it allows them to choose a supplier who could provide a steady supply of power at a cheaper price. The RCOA makes the cost of power considerable lower because the generator and the end user directly negotiate its terms, unlike before when companies are tied with the suppliers of their electricity distributors.

Since the agreement is between the supplier and the customer, a power generation firm doesn’t need to bundle additional charges which make power in the Philippines very costly. Investors have been wary of setting up shop in the country because of high power prices.

Aside from SMB, some 238 companies have sought accreditation as a contestable customer, according to the PEMC. These firms have yet to complete the requirements, the regulator said.

Electricity end-users whose average monthly consumption is at least one megawatt (MW) are qualified to become contestable customers.

San Miguel Brewery, the market leader in the Philippine beer industry, has five breweries strategically located across the archipelago. Its vast product portfolio has garnered internationally acclaim, winning in the prestigious Monde awards every year. Today, San Miguel Brewery produces the following brands: Pale Pilsen, San Mig Zero, Super Dry, Cervesa Negra, Premium All Malt, Strong Ice, Red Horse, San Mig Light, San Miguel Flavored Beer, and Gold Eagle.

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