Publicly listed Aboitiz Power Corp. said its two affiliates have signed an agreement to extend by another year its transition supply contract with state-run National Power Corp. (Napocor) and Power Sector Assets and Liabilities Management Corp. (PSALM).
This will allow Napocor to continue supplying electricity to Manila Electric Co. (Meralco) under a contract that was extended up to Dec. 26, 2012 or three months after the implementation of open access and retail competition, whichever comes first.
APC said its affiliates, Therma Luzon Inc. and AP Renewables Inc., extended the power supply contract with Napocor for up to 12 months starting Dec. 26, 2011. Therma Luzon and AP Renewables will deliver to Meralco 2,953.63 gigawatt-hours and 2,078.88 gWh of energy, respectively, a year.
The extension of the power supply contract between Napocor and Meralco will allow the government to continue providing discounted power rates to economic zone locators up to next year.
The supply contract, which is being implemented under the Ecozone Rate Program (ERP), was supposed to have lapsed on December 25 this year. The extension will thus ensure the stability of electricity prices charged by Meralco to its consumers.
According to PSALM, this decision addressed the request of the Philippine Economic Zone Authority and the Semiconductor and Electronics Industries in the Philippines Inc. to retain the power rate discount in economic zones.