Aboitiz Power augments supply to Albay utility

Manila Times.net
Published : Friday, September 16, 2011 00:00 Written by : Euan Paulo C. Añonuevo


ABOITIZ Power Corp. said it will increase its supply to cash-strapped Albay Electric Cooperative.
Under the agreement signed by the two parties, AP, through wholly owned subsidiary AP Renewables Inc., will increase its dispatch to Aleco from 40 percent of the latter’s requirements to 65 percent, or from 23 megawatts to over 37 megawatts.


“We are very happy to help Aleco in providing energy to its members. This move has been beneficial to them as well as the residents of Albay,” Roland Gaerlan, AP vice president for marketing, said.


The increase—which took effect August 26—would benefit more than 150, 000 member-consumers of the local cooperative.


Under the supervision of state-run National Electrification Administration, Aleco tapped AP to guarantee the power supply in the province, as well as to temper the price of electricity it sources from the Wholesale Electricity Spot Market.


Gaerlan said augmenting Aleco’s supply reduces the monthly electricity bills of consumers because this would mean cutting the volume of power sourced from the WESM, where prices are volatile.


“The additional energy supply would result in lower rates passed on to the end consumers. Plus, it would make power cost on succeeding months more predictable,” he added.


The WESM is a platform for power generators to offer excess generating capacity and for distribution companies to source un-contracted power requirements.


NEA took over Aleco in February this year.


The cooperative earlier faced disconnection from the main grid due to its failure to meet its financial obligations to Philippine Electricity Market Corp. and the National Grid Corp. of the Philippines. PEMC operates WESM, while NGCP runs the country’s power grid.