MANILA, Philippines – Power utility giant Manila Electric Co. (Meralco) expects to raise an additional P769 million from its new customer Carmelray Industrial Park II, a top company official said.
In his report to stockholders recently, Meralco president Jose De Jesus noted that the entry of Camelray to Meralco’s franchise area would add some 100 million kilowatthours (kwh) to the company’s annual sales.
“This is equivalent to annual gross revenues of around P769 million. Meralco also expects to benefit from this development in terms of lower system loss,” De Jesus said.
Meralco is the country’s largest power distribution company with around 4.6 million customers in its franchise area.
In April this year, the Philippine Economic Zone Authority approved Meralco’s application to register as a utility enterprise.
“Carmelray was one of two ecozones within the Meralco franchise area that Meralco did not serve. With Carmelray receiving service from Meralco, that leaves only the Cavite Economic Zone still not receiving electric distribution from us,” de Jesus said.
Meralco earlier announced that it started distributing electricity to Carmelray Industrial Park on April 9, 2009.
In a disclosure to the PSE, Meralco said it had signed a memorandum of agreement (MOA) with Calmelray-JTCI Corp. (CTC) and CIP II Power Corp. (CIPP).
Under the agreement, CIPP will transfer to Meralco its rights and obligations under the concession contract dated Oct. 3, 2000 which gave CIPP the exclusive right to sell electricity to the locators of the Carmelray Industrial Park II.
CIPP also signed a MOA with Meralco where CIPP shall transfer ownership of the existing electric distribution system in the park to Meralco, upon Meralco’s payment of a purchase price still to be agreed upon by the parties.
In a separate statement, Trans-Asia Oil and Energy Development Corp. said the transfers will take effect on April 9, 2009 or upon the approval of the agreements by the Philippine Economic Zone Authority (PEZA) and if necessary, by the Energy Regulatory Commission.
CIPP is a wholly-owned subsidiary of Trans-Asia Oil, controlled by the Phinma Group.