The thermal power plants of a unit of Aboitiz Power Corp. (AboitizPower) will not be shutting down after all as it rescinded its request to disconnect from the distribution system of Manila Electric Co. (Meralco) and to pull out from the Wholesale Electricity Spot Market (WESM).
Therma Mobile, Inc. is supposed to quit trading on the electricity spot market, as well as to turn off its diesel-fired plants in Navotas on July 15 since its power contract with the listed utility was not renewed, its parent said early June.
But two days after the scheduled shutdown, AboitizPower told the stock exchange that the thermal energy unit notified the Department of Energy (DoE) and Energy Regulatory Commission (ERC) that it has withdrawn its requests for physical disconnection from Meralco’s system and de-registration from WESM.
The turnaround came upon the recent signing of an ancillary services procurement agreement between Therma Mobile and the privately-owned National Grid Corp. of the Philippines (NGCP).
The two firms are set to file an application with the ERC for the approval of their contract.
In the meantime, AboitizPower said, Therma Mobile will keep its power plants running and will continue trading at WESM.
In February last year, the thermal energy firm disconnected from Meralco’s system and quit trading at WESM. Two months later, it signed a one-year power contract with the distribution utility.
The Aboitiz power arm owns Therma Mobile through its thermal energy holding firm Therma Power, Inc.
Shares in AboitizPower increased by 1.89% to close at P27 apiece on Friday. — Adam J. Ang
