AboitizPower deactivates power barges in Navotas

MANILA, Philippines — Aboitiz Power Corp. is temporarily deactivating its diesel-fired power barges moored in Navotas next month due to lack of approvals of its power supply agreement (PSA).

In a disclosure to the Philippine Stock Exchange yesterday, AboitizPower said it is mothballing its bunker C-fired diesel power plants under subsidiary Therma Mobile Inc.

It said Therma Mobile has notified Manila Electric Co. (Meralco) that it will physically disconnect from the power distributor’s system and will deregister as a trading participant in the Wholesale Electricity Spot Market (WESM) starting Feb. 5.

The company will also send notices to Philippine Electricity Market Corp. (PEMC), Independent Electricity Market Operator of the Philippines Inc. (IEMOP), Department of Energy (DOE) and Energy Regulatory Commission (ERC), following the notice requirements under the Electric Power Industry Reform Act of 2001 (EPIRA).

This is because Therma Mobile has been commercially inactive since June 26, 2018 due to “the absence of an approved power supply agreement,” AboitizPower said.

“After evaluating the circumstances and the options available, TMO decided to mothball its bunker C-fired diesel power plants,” it said.

In the meantime, the company is exploring options to utilize the power barges in the future.

“We are looking at transferring the barges where it is needed and the remaining barges will connect directly with National Grid Corp. of the Philippines (NGCP) once the substation in Navotas of NGCP is completed,” AboitizPower COO Emmanuel Rubio said in a text message to The STAR.