A subsidiary of Aboitiz Power Corp. said it was no longer disconnecting from the Manila Electric Co. (Meralco) system, after an Ancillary Services Procurement Agreement (Aspa) had been signed with National Grid Corp. of the Philippines (NGCP).
In a disclosure to the stock market on Friday, Aboitiz Power said Therma Mobile Inc. (TMO) was withdrawing an earlier request to deregister from the Wholesale Electricity Spot Market (WESM) and Meralco.
This, Aboitiz Power said, developed after TMO and NGCP signed an Aspa, or a standby power supply deal, which essentially ensured a backup supply in case the power grid could not meet demand.
TMO has already notified the Department of Energy and the Energy Regulatory Commission (ERC) about the agreement.
On June 3, TMO said it would disconnect from Meralco’s system and deregister as a trading participant in WESM effective July 15 in the absence of a power supply agreement approved by the ERC.
TMO is a wholly owned subsidiary of Aboitiz Power Corp. through Therma Power Inc., the group’s holding company for its investments in thermal energy.
Ancillary services refer to standby power supply that can be tapped in case regular supply falls short of the requirement.
By having this extra capacity, NGCP can ensure that the facilities and the grid will not be damaged due to a sudden drop in voltage.
TMO and NGCP will jointly file an application in the ERC for the approval of the Aspa.