Transco sells P140-M assets to Meralco, Alsons
The Energy Regulatory Commission (ERC) has approved the sale of almost P140 million worth of sub-transmission assets of state-run National Transmission Corp. (TransCo) to two utility firms.
The sub- transmission facilities will be turned over to Manila Electric Co. (Meralco) and Lima Utilities Corp. of the Alsons Group, the power sector regulator said.
“The application for approval of the sale of various sub-transmission lines/assets of TransCo within the franchise area of Meralco, as covered by a contract to sell filed by TransCo and Meralco, is hereby approved,” ERC said in its website.
Specifically, several 69- and 13.8-kilovolt (kV) transmission lines and substation equipment in Makban, Los Baños and Calamba, all in Laguna province, were sold to Meralco for P84.945 million.
“Meralco has the financial and technical capabilities to operate, maintain, upgrade and expand the said sub-transmission assets,” ERC said.
Meralco is the country’s largest power distributor. It added 40,000 new customers in the first quarter, bringing the total to a record 5.07 million as of end-March.
In a separate notice, ERC said it also approved the sale of subtransmission lines and assets to Lima Utilities.
“The sale of the BatangasLima Land 69-kV line in the amount of P54.453 million to Lima Utilities comprising of P31.794 million for the first contract and P9.447 million for the second contract is hereby approved,” ERC said.
Lima Utilities is part of the Alcantara family’s Alsons Consolidated Resources, which is also into power generation ( Western Mindanao Power Corp. and Southern Philippines Power Corp.), properties (Lima Land Inc. and Alsons Land Corp.) and agriculture (Saranggani Agricultural Co. Inc. and Alsons Aquaculture Corp.)
The sale of TransCo’s power lines, which was backed by the Electric Power Industry Reform Act of 2001, targets ensuring the quality, reliability, security and affordability of electric service to end-users.
TransCo and the asset buyers are required to submit a deed of absolute sale to the ERC upon the completion of the sale.
In April, the ERC approved the petition of TransCo to sell P125 million worth of subtransmission assets to Visayan Electric Co. Inc., a power distributor of the Aboitiz Group.