Tuesday, December 20, 2016

Meralco, Transco seek ERC okay to sell STAs



By Lenie Lectura -

THE National Transmission Corp. (Transco) and the Manila Electric Co. (Meralco) are jointly seeking the Energy Regulatory Commission’s (ERC) approval of the sale of subtransmission assets (STAs) to the country’s largest distribution-utility (DU) firm.
TransCo has already negotiated and concluded a contract to sell with Meralco dated December 23, 2015, covering three STAs worth P204,162,119.75. However, both parties still need to seek regulatory approval before the contract takes effect. The STAs Meralco wants to pursue are the Bolbok-Mahabang Parang-Concepcion 13.8 kilovolt (kV) line; Dasmariñas equipment; and the Biñan 115-kV switchyard.
Under the terms of the contract, the total purchase price shall be paid by Meralco in cash or in the form of manager’s or cashier’s check within 60 days from its receipt of the notice of the ERC’s final approval of the contract.
Meralco is the only DU utilizing the assets and, according to Transco, possesses the technical and financial qualifications to acquire, operate, maintain, expand and upgrade the STAs within its franchise area.
“The approval by the commission shall pave the way for the attainment of a reformed electricity industry under the Electric Power Industry Reform Act, or Epira, which would ultimately best serve the interest of the consuming public,” Transco and Meralco said in their joint application.

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