Impact on power competition: Ang’s entry into Lopez empire on ERC’s radar
Tycoon Ramon Ang’s investment in the Lopez Group has drawn the attention of the Energy Regulatory Commission (ERC), which is ready to assess its potential impact on competition in the electricity market.
The Energy Regulatory Commission (ERC) in the Philippines is closely monitoring the impact of tycoon Ramon Ang's investment in the Lopez Group on the electricity market, according to ERC Chairman Francis Saturnino Juan. The agency is assessing whether Ang's acquisition of a 25.7-percent stake in Lopez Inc. through his holding firm Illumina Investment Holdings Inc. may breach market-share limits or cross-ownership restrictions.
Juan emphasized that the ERC will determine if the deal poses any potential competition concerns, despite the fact that Ang made the investment personally. The Lopez Group, a prominent player in the energy sector, includes power generation arm First Gen Corp., which represents an indirect economic interest for Ang equivalent to 5.79 percent.
ERC data revealed that Ang's San Miguel Global Power and First Gen Corp. are among the top two and three power producers, respectively, contributing to 19.62 percent and 10.74 percent of the market. Ang's other stake in Manila Electric Co. (Meralco) adds another significant connection under scrutiny by the ERC. According to the Electric Power Industry Reform Act, a company cannot own, operate or control more than 25 percent of the national installed generating capacity.
Globalinks Securities and Stocks Inc.'s head of sales trading, Toby Allan Arce, noted that Ang's power portfolio could potentially alter the strategic options available to the Lopez Group due to his significant presence in the sector.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
