Aboitiz unit gets franchise renewal

MANILA, Philippines - AboitizPower distribution utility Cotabato Light and Power Co. (Cotabato Light) has been allowed by Congress to renew its franchise by another 25 years, AboitizPower said over the weekend.

The franchise, grants the company the right to construct, install, operate and maintain a distribution system for the conveyance of electric power to the end-users in the city of Cotabato and portions of the municipalities of Datu Odin Sinsuat and Sultan Kudarat in Maguindanao in Mindanao.

The renewal, signed last June 16, shall be in effect until 2039, AbotiizPower said.

AboitizPower is the power generation arm of the Aboitiz Group.

Cotabato Light was incorporated on April 23, 1938. Its original 50-year distribution franchise had been granted by the precursor of the National Electrification Administration (NEA), the agency tasked to manage and oversee and operations of cooperatives and other distribution utilities.

At present, Cotabato Light serves more than 35, 000 customers through its substation. It maintains a 6.5-megawatt diesel-fed power plant.

The electric utility’s main source of power comes from the Power Sector Assets and Liabilities Management Corp. (PSALM), government entity tasked to privatize state-owned power assets.  

AboitizPower, meanwhile, has investments in power generation, distribution, retail and power services. It is a major producer of Cleanergy, its brand for renewable energy in the Philippines.

At present, the company has distribution utilities operating in high-growth areas such as Luzon, Visayas and Mindanao.