AboitizPower unit sets sight on PSA for Navotas plant
By Lenie Lectura – June 5, 2020
from Business Mirror
Therma Mobile Inc. (TMO), a subsidiary of Aboitiz Power Corp., is hopeful that it could soon forge a new power supply agreement (PSA) involving its 242-megawatt (MW) bunker-C fired power facility in Navotas, which has been placed on temporary shutdown.
The company told the stock exchange on Thursday that TMO’s bunker-C fired diesel power plants will be on reserve shutdown in the absence of a PSA duly approved by the Energy Regulatory Commission (ERC).
TMO signed last April 26, 2019 a PSA with the Manila Electric Co. (Meralco) for a term of one year. This contract has not been renewed and currently, TMO has no ERC-approved PSA.
TMO has already told Meralco that it will physically disconnect from the latter’s distribution system. TMO will also deregister as a Trading Participant in the Wholesale Electricity Spot Market effective July 15.
Similar notices were sent to Philippine Electricity Market Corporation, Independent Electricity Market Operator of the Philippines Inc., Department of Energy, National Grid Corporation of the Philippines, and ERC.
“The Meralco extension contract expired and we have yet to enter into another agreement. Same as last year, in order for the plant not to be subjected to the must offer rule, we see the need to deregister and disconnect.
We can reconnect once we have concluded a new power supply agreement, either to supply energy or ancillary services, hopefully in the next 30 to 45 days,” AboitizPower President Emmanuel Rubio said via SMS.
TMO is a wholly owned subsidiary of AboitizPower through Therma Power Inc., its holding company for its investments in thermal energy.
At end-March this year, AboitizPower posted P2.1 billion in net income from P3.6 billion recorded in the same period last year.
The company’s performance was affected by power plant outages and lower selling prices.
Rubio said the company continues to adapt to the constantly changing business climate due to the Covid-19 situation and would make further adjustments when necessary, to sustain the business.
“The pandemic has affected the timeline of GNPD (GNPower Dinginin Ltd. Co.). Unit 1 will synchronize by the fourth quarter of 2020 and will commence commercial operations by the first quarter of 2021.
Unit 2 will synchronize by the first quarter of 2021 and will commence commercial operations by the second quarter of 2021,” he said during the company’s recent annual meeting.
