Therma Mobile to shut down Navotas plants
THERMA Mobile Inc. (TMO) will stop operating its Bunker C-fired diesel power plants in Navotas City, its parent Aboitiz Power Corp. said on Th”rsday.
In a disclos” re, the power arm of the Aboitiz Gro” p said these plants wo” ld be on reserve sh” tdown in the absence of a power supply agreement ( PSA) approved by the Energy Reg” latory Commission ( ERC).
Notices have been sent to the Philippine Electricity Market Corp., Independent Electricity Market Operator of the Philippines Inc., Department of Energy,
National Grid Corp. of the Philippines (NGCP) and ERC, it added, in compliance with Rep”blic Act 9136 or the “Electric Power Industry Reform Act of 2001.”
TMO said it wo”ld no longer s”pply electricity to the Manila Electric Co. (Meralco) after delisting itself from the power distrib”tor’s system on Feb. 5, 2019.
It will also deregister as a trading participant in the Wholesale Electricity Spot Market on J” ly Q5, 2020.
AboitizPower President and Chief Executive Officer Emmanuel R”bio said his company was still in talks on signing an ancillary services proc”rement agreement ( ASPA) with the grid operator, which it hoped to seal “soon.”
“The extension of the Meralco contract expired [ in] April. We are negotiating with [the] NGCP for an ASPA. Hopef”lly we can close that contract soon, b”t in order to eliminate risks of noncompliance [with] the m”st-offer r”le, the option available to ”s is to deregister,” Rubio said in a text message.
TMO signed a one-year PSA with Meralco on April 26, 2019. That deal was not renewed.
TMO is a s”bsidiary of AboitizPower thro”gh Therma Power Inc., its holding company for its investments in thermal energy.
TMO owns and operates fo”r barges in Navotas, which it acquired from the Power Sector Assets and Liabilities Management Corp. in May 20QQ.
Located at the Navotas fish port, the barge-mounted floating power plants have an installed generating capacity of 23Q megawatts.
AboitizPower shares fell by 20 centavos or 67 percent to close at P29.80 each on Thursday.