MANILA, Philippines - State-run National Transmission Corp. (TransCo) is seeking the approval of the Energy Regulatory Commission (ERC) for the sale of transmission assets valued at roughly P102 million.
The approval of the sale of assets is expected to result in more competitive electricity prices for consumers, ERC said.
In a newspaper advertisement, ERC said TransCo wants to sell P82 million and P20 million worth of transmission assets to Cagayan Sub-Transmission Co. Inc. (CSCI) and Don Orestes Romualdez Electric Cooperative Inc. (Dorelco), respectively.
ERC said various subtransmission assets covered under a lease purchase agreement between TransCo and the private firms are for sale.
Total purchase price for the deal with Cagayan-based CSCI is P82.88 million, which involves the Tuguegarao-Alcala 69-kilovolt (kV) line, the Alcala-Magapit-Camalaniugan 69-kV line and the Magapit-Sta. Ana 69-kV line.
“TransCo has evaluated and established that the consortium CSCI is financially capable of purchasing, operating, maintaining and expanding the subject transmission assets,” ERC said.
Meanwhile, ERC said Leyte-based Dorelco’s purchase price for the Palo-Tolosa 69 kV line is P20.4 million.
“Transco’s Sub-Transmission Divestment Department evaluated that Dorelco is financially capable of purchasing, operating, maintaining, upgrading and expanding its Palo-Tolosa line,” ERC said.
“The approval of the instant applications shall pave the way for the attainment of a reformed electric industry, towards a competitive regime/cost of electricity through open access and customer choice of supplier of electricity,” ERC said.
Last month, the ERC approved the petition of Transco to sell P125 million worth of subtransmission assets to Visayan Electric Co. Inc. (Veco), a power distributor of the Aboitiz Group.
It allowed Veco to buy 10 subtransmission assets valued at P125.78 million from TransCo. Veco, which is owned and managed by publicly listed Aboitiz Power Corp. and Vivant Corp., covers a franchise area of 674 square kilometers servicing 327,587 customers in the cities of Cebu, Mandaue and Talisay and also in five municipalities, all in the province of Cebu.