Trans-Asia to supply power to Lafarge plants

MANILA, Philippines - Trans-Asia Oil & Energy Development Corp. and Lafarge Republic Inc. (LRI) have entered into an agreement for the supply of electricity to the cement giant’s plants in Rizal, the firms said in separate disclosures to the Philippine Stock Exchange (PSE).

The retail competition and electricity supply agreement comes on the heels of the start of the retail competition and open access (RCOA) regime.

RCOA allows businesses to be able to decide for themselves which provider is in the best position to supply their needs.

These businesses are the contestable customers, or those with electricity demand of at least one-megawatt a month.

In its disclosure, Lafarge said the electricity supply agreement is supplemental to an existing power supply agreement dated July 4, 2012 between Trans-Asia and LRI.

This agreement is for the supply of electricity to Lafarge’s cement manufacturing plants in Norzagaray, Bulacan and Taysan, Batangas for a period of five years from December 2012.

Lafarge also entered into a similar agreement last year with Masinloc Power Partners Co.

“Please be informed that on Nov. 4, 2013, pursuant to the implementation of retail competition and open access in the electric power industry, LRI entered into separate supplemental agreements with Masinloc and Trans-Asia, whereby the parties agreed to supplement and amend their respective July 2012 contracts to cover the supply of electricity to LRI’s cement manufacturing plant in Teresa, Rizal, under agreed terms and conditions,” Lafarge said its disclosure yesterday.

Trans-Asia Oil is a company under the Phinma Group.

In the first half of the year, it posted a consolidated net income of P298.3 million, higher than the P220.4 million in the same period last year, data from the company showed.