Aboitiz Power eyes bigger market

MANILA, Philippines - AboitizPower, the holding company of the Aboitiz Group’s power generation, distribution and retail businesses, has raised its planned investment, as it expects to expand its market and diversify its customer base under the so-called Open Access regime in the energy sector.

AboitizPower now plans to invest in the power sector around P125 billion from a previous announcement of P85 billion.

Over the next five years, the company expects to invest P125 billion in various projects to double its capacity to 3,500 megawatts.

At the annual stockholders’ meeting of Aboitiz Equity Ventures on Friday, president and chief executive officer Erramon Aboitiz said Open Access regime completes the industry’s shift to market-driven from monopolistic.

“From a regulated, monopolistic industry, the power industry will complete its transformation into a competitive, market-driven one. In Aboitiz Power, we view this development as a chance to not only expand our markets, but to diversify our customer base,” he said.

Under the so-called Open Access regime, large power users will be able to choose their own suppliers, in contrast with the current system where they are limited to the supplier that has jurisdiction over their areas.

Mandated under the Electric Power Industry Reform Act of 2001, the Open-Access regime is expected to spur competition among players.

Aboitiz expressed optimism that AboitizPower is ready for the new environment.

“We await the implementation of the first phase of Open Access this coming June. We believe we have taken the necessary steps to prepare to compete from a position of leadership and strength,” Aboitiz said.

At the same time, he expressed hopes that contestable customers would be willing to sign long-term contracts with suppliers to make it easier for generation companies to build additional capacity.

“The only way it would work is if contestable customers are willing to sign long-term contracts,” Aboitiz said.