Thursday, January 17, 2019

AboitizPower ends contract with Hanjin unit




ABOITIZ Power Corp. walked away from offering a retail electricity supply contract to Hanjin Heavy Industries and Construction Philippines (HHIC-Philippines) ahead of the expiration of their one-year contract in February this year, sparing the energy company from the issues surrounding the financial woes faced by the South Korean company.
“The price that they were asking us is too low. We’re better off offering it to another customer,” Emmanuel V. Rubio, AboitizPower chief operating officer, told reporters on Tuesday during an informal gathering on Tuesday.
“It’s not unusual. We’ve walked away from other customers,” he added.
HHIC-Philippines was previously a customer of Subic Enerzone Corp., another Aboitiz-led company and the local distribution utility in the area, before it signed up for a one-year contract with AboitizPower retail electricity supply (RES) unit Advent Energy, Inc.
“The contract, which ends in February this year, was won by another RES,” Mr. Rubio said, but declining to name the winning power supplier.
Advent is one of five Aboitiz-led retail electricity suppliers and the group’s biggest in terms of customer demand at 235.78 megawatts (MW) as of October last year. Aboitiz Energy Solutions, Inc. has the biggest number of customers at 156, beating Advent’s 77 total count as of the same period.
The other RES units are SN Aboitiz Power-RES, Inc., San Fernando Light & Power, PRISM Energy, Inc. and Mazzaraty Energy Corp.
AboitizPower said the local Hanjin unit had been a long-standing customer of Subic Enerzone, starting in 2008 with sales of around 4 MW, and peaking at one point to 95 MW.
Hanjin’s switch to Advent as its power supplier is called for under the rules on retail competition and open access (RCOA), which calls for contestable customers to move away from being part of the captive market of a distribution utility.
These are customers whose electricity consumption for the past 12 months has reached the threshold set by the Energy Regulatory Commission. — Victor V. Saulon

No comments:

Post a Comment