Meralco interested in 2 electric co-ops in Zamboanga, Batangas

By Lenie Lectura - November 23, 2016

http://www.businessmirror.com.ph/meralco-interested-in-2-electric-co-ops-in-zamboanga-batangas/

THE Manila Electric Co.’s (Meralco) top official has confirmed the utility firm’s interest in two electric cooperatives (ECs) in Zamboanga and Batangas.

“I think we are looking at that—Zamcelco [Zamboanga City Electric Cooperative] and in Batangas, too,” Meralco Chairman Manuel Pangilinan said when asked if the company has taken interest in a distribution utility (DU) in Zamboanga.

Pangilinan said he reviewed Meralco’s plan about two weeks ago. The plan he was referring to is “to continue to look at opportunities in enlarging their franchise, whether it is adjacent to its own franchise, or in other parts of the country. “

He did not name the EC in Batangas.

In May the National Electrification Administration (NEA) said interested DUs are mulling over a possible takeover of Zamcelco’s management and operation. If and when it pushes through, this would be done via an auction of an Investment and Management Contract (IMC).

Meralco Vice President and Head for Electric Distribution Development Office Ireneo Acuña said a possible takeover of an EC’s management and operation would fast-track improvements in the DU.  At the same time, this will bring the quality of service to the level consistent with the requirements of local residents and investors.

“Meralco believes the key to sustainable power supply is the presence of robust DU that can bring onboard reliable and cost-efficient power suppliers and ensure delivery of this vital service to the consumer. If welcome and if of value, Meralco is willing to partner with local electric cooperatives,” said Acuña in a text message, when sought for comment.

Debt-saddled Zamcelco has also caught the interest of Aboitiz Power Corp.

“If they go for IMC, then we would definitely look at it,” Aboitiz Power President and COO Antonio R. Moraza said in a text message. “We are always interested in new opportunities,” Moraza added.

Zamcelco’s outstanding debt as of December 2015 stood at P337 million. Of the amount, P280 million is owed to the NEA for the use of modular generator sets.