Aboitiz Power unit debunks PEMC findings

MANILA, Philippines - Therma Mobile Inc. (TMO), a subsidiary of AboitizPower, the power generation arm of the Aboitiz Group, is debunking the findings of market operator Philippine Electricity Market Corp. (PEMC) on the company’s power dispatch.

PEMC operates the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity. It conducted an investigation on TMO in the dispatch of its power barges during the November to December 2013 supply period. This after the generation charge of Manila Electric Co. (Meralco) rose to a record P9.10 per kilowatt-hour in December 2013.

“As a result of the Meralco price hike case brought before the Supreme Court, the Supreme Court ordered the Energy Regulatory Commission (ERC) to investigate anti-competitive behavior and abuse of market power allegedly committed by some WESM participants. As such, PEMC conducted the investigations under the “Must Run” and “Must-Offer” rules of the WESM,” PEMC said.

PEMC initially found that TMO withheld capacity during the period under investigation.

In its letter dated Jan. 30, 2015, PEMC imposed penalties amounting to P234.9 million on TMO. The penalties will be collected from TMO through the WESM settlement process.

But TMO said it followed the rules and delivered all its available capacity to its customer Meralco, contrary to the recent findings of the market operator.

The company said it offered and delivered its entire available and dispatchable load to Meralco during the power shortages of November to December 2013.

It was in November 2013 when TMO took over the four barge-mounted bunker-fired power-generating facilities in Navotas. The power plant engines and its 115-kv transmission facilities have not been operating for at least five years and needed rehabilitation.

Despite the ongoing rehabilitation of the engines and transmission lines, TMO was still able to “safely, reliably and consistently” supply 100 megawatts to Meralco in the November to December 2013 supply months.

“Although our rated capacity is 234 MW (net), we could not export as much because of the condition of our engines and the limitation of the 115-kv transmission line,” TMO president and COO Jovy P. Batiquin said.

Forcing the facility to deliver more than 100 MW at the time would have caused a collapse of the line, he said.

 “We are very concerned that the decision of PEMC’s investigating unit did not consider the realities that TMO faced to deliver the much needed 100 MW for its customer, Meralco,” Batiquin said.