Mabuhay Energy Corporation, or MECO, is a licensed Retail Electricity Supplier. It is a member of the Aviva Group of Companies and was established in the Philippines in 2017. It obtained its RES license from the ERC in December 2019, and has a team of professionals with extensive experience in electricity retail competition in the Philippines and in Japan. It patterned its pricing mechanism after those of retail electricity suppliers in Japan, allowing customers access to more options in the market and to customized pricing and supply, something not always offered in the market.
Sherwin G. Hing leads MECO as its President & CEO. He comes from an old business hand in Cebu and is bringing years of logistics experience to a sunrise industry. MECO is trying to be competitive as an alternative to major power suppliers. “We offer schemes that could tailor-fit to client requirements. Flexibility is key in a discriminating and competitive market.”
MECO also claims an advantage as a small, agile, Silicon Valley-like venture that is not afraid of testing the waters. It aims to be as flexible as small business outfits go. “As we grow our portfolio, a big percentage of that, let’s say for 30%-40% in the next five to seven years, we intend to put up our own generating capacity, and it’s a combination of power supply agreement from different generation suppliers, partly from the Wholesale Electricity Spot Market, as well. It’s going to be a hybrid portfolio,” Mr. Hing told Manila Bulletin.
MECO is new and is independent of the established power players unlike many retail electricity suppliers which are mere appendages to big power businesses seeking to preserve their market shares, but Mr. Hing is confident that there is room for it as a retail electricity supplier in the Philippines.
In fact, MECO is about to close more clients by the end of Q1, adding to the current list that includes Megaworld, Federal Land, Monde M.Y. San, Charoen Pokphand Foods, and Sun Life.
Business and the pandemic
Like everyone else, MECO has had to adjust to the pandemic and its effects on the market. “Mobility is affected but we still get to close deals. We adapt, we adjust, we go on despite the current situation. Of course, it’s risky for our people to go around and meet people, but we were still able to achieve what we wanted to achieve in 2020,” Mr. Hing added.
MECO says it is earmarking PhP500 million for this year’s capital expenditures, which include two new solar projects in Bulacan totaling 20MW, and an 18MW mini-hydro project in Mindanao, all expected to break ground soon.
Sustainability and renewable energy
Global environmental sustainability is at the heart of MECO’s business ideals. It shares global environmental concerns on managing the push and pulls between business and environmental sustainability and accountability, given the huge financial, social, and environmental risks that come with opportunities. It seeks to impact society and the environment positively.
“In the beginning, we needed to build a track record, so our team asked potential customers what kind of service we offer. We responded in kind. We put a lot of effort to proving ourselves in the industry. We’re also focused on helping rebuild the economy. Beyond that, we will highlight renewables,” said MECO Vice-President and Head of Sales Jacqueline Castillo.
Mr. Hing confirms MECO’s bent on going green. “We highly encourage, together with the other players in the market, focusing on renewables. Other countries are already shutting down coal plant - not a bad start for saving the planet. I hope the market slowly realizes how important it is to do this shift to become sustainable.”