Aboitiz Group takes over Subic power distribution

The Aboitiz Group, through its newly formed consortium – the Subic Enerzone Corp., formally took over yesterday the electric power distribution system of the Subic Bay Freeport.

The Subic Enerzone is a consortium of Aboitiz Equity Ventures Inc. and Davao Light and Power Company Inc.

Subic Enerzone will assume operations beginning Oct. 25 after the required issuance of the Notice of Proceed (NTP) from the Subic Bay Metropolitan Authority (SBMA).

According to SBMA chairman Felicito Payumo, the SBMA stands to gain P40 million in lease and rental fees from the Subic Enerzone.

"With the turnover, the Freeport is guaranteed improve, reliable, quality power distribution and lower distribution rates," Payumo said.

Subic Enerzone president Jaime Jose Aboitiz, upon the turnover, said that the consortium would immediately effect a reduction on the rates in Subic.

"Investors are looking forward to a price rollback on power rates and more efficient power supply that would mean a lot of savings for them, particularly those multinational companies engaged in the manufacturing business," Aboitiz said.

Payumo said that with Subic Enerzone’s takeover, the rate power rate in Subic would go down to P3.90 per kilowatt hour from P4.49 per kwh.