By Lenie Lectura - August 1, 2019
ABOITIZ Power Corp. (AboitizPower)
reported a 5-percent drop in net income at end-June mainly on account of higher
volume and cost of purchased power during the six-month period when the grid
experienced thin reserves.
From January to June this year, the
power firm posted P8.6 billion in reported net income, from P9.1 billion
reported in the same period a year ago. Without one-off gains, the company’s
core net income was P8.5 billion, 19 percent lower than the P10.5 billion
recorded in the same period last year.
“The first half of 2019 was
challenging for AboitizPower as Luzon faced supply issues leading to the
elections. Nevertheless, we remained committed to serving our customers to the
extent of providing them with replacement power that we bought from the spot
market at rates higher than our contract prices,” said Emmanuel V. Rubio,
AboitizPower chief operating officer.
However, spot market prices were
exceptionally high during the first half of 2019. The company also explained
that it purchased replacement power due to outages and contracting ahead in
preparation for incoming capacity.
The power firm is engaged in power
generation and distribution businesses.
Its generation and retail
electricity supply business recorded consolidated earnings before interest,
tax, depreciation and amortization (Ebitda) of P17.8 billion in the first half
of 2019, or 12 percent lower than the P20.2 billion recorded during the same
period last year.
Capacity sold for the first half of
2019 fell by 6 percent, from 3,213 megawatts in 2018 to 3,035 MW in 2019, due
to Therma Mobile Inc.’s bunker C-fired diesel power plants being put on
preservation mode in the first quarter of 2019.
“With supply stabilizing and with
our new capacity coming in, we are positive about exceeding our 2020 target of
4,000 MW attributable capacity, which will allow for a steady and sustainable
long-term growth momentum,” Rubio said.
The company’s distribution business,
meanwhile, recorded a consolidated Ebitda of P3.7 billion, 5 percent lower than
last year’s P3.9 billion due to lost margins from the decommissioning of the
Bajada power plant.
Energy sales rose to 2,842
gigawatt-hours, a 5-percent increase from the 2,719 GWh recorded in the first
half of 2018, primarily driven by the increase in new customers across all
segments.
ERC: 13 million electricity users affected by SC
ruling on CSP
By Lenie Lectura - August 1,
2019
https://businessmirror.com.ph/2019/08/01/erc-13-million-electricity-users-affected-by-sc-ruling-on-csp/
MORE than 13 million electricity
users will be affected by the Supreme Court decision that required all
power-supply agreements (PSAs) forged after June 30, 2015, to undergo
competitive selection process (CSP).
In its 74-page motion for
reconsideration filed before the High Tribunal, the Energy Regulatory
Commission (ERC) said 11,949,688 residential customers or 71,698,128 persons;
1,144,842 commercial customers; and 21,909 industrial customers stand to be
affected by the SC ruling.
It stressed that the SC decision
“has serious implications” if the PSAs filed during the period starting June
30, 2015, to April 29, 2016, are declared null and void.
In particular, the ERC cited 99 PSAs
that were filed during the period that did not comply with the CSP requirements.
“Hence, there are 99 PSAs [excluding
two PSAs that were later withdrawn—54 acted upon, 45 unacted upon] which stand
to be affected by this Honorable Court’s decision for failing to comply with
the CSP requirements,” said the ERC.
These 99 PSAs cover 54 generating
plants that were contracted by 52 distribution utilities. Of the 54 plants, 45
are greenfield plants that were either constructed or are about to be
constructed, thus, have brought in or will infuse the additional capacity
needed by the country.
These 45 greenfield plants have a
total installed capacity of 8,860.10 MW. “As our economy and population grow,
this additional capacity is crucial to ensuring that we avoid the power outages
and brownouts of the past,” said the ERC.
These 99 PSAs also covered a certain
percentage of the DUs’ total energy requirements and, in some instances,
completely filled the requirements for electricity of the DUs’ customers.
“If these PSAs are voided, the generation companies would be constrained to
stop supplying electricity to the DUs [distribution utilities] that distribute
to the abovementioned customers since the generation company and the DU have no
ERC-approved PSA, whether provisional or otherwise, as basis to supply and
collect the appropriate rate in exchange for said capacity,” said the ERC.
The ERC also asked the SC to remand
the case to the Court of Appeals for reception of evidence to determine the
PSAs’ compliance with CSP requirements.
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