Saturday, May 05, 2007 Locators lobby for ‘cheaper’ power By Malou M. Mozo Sun.Star Staff Reporter
LOCATORS at the Mactan Economic Zone (MEZ) 1 hope for cheaper power rates with Aboitiz Power Corp.’s (APC) acquisition of East Asia Utilities Corp. (EAUC).
“MEZ 1 locators would like to take it positively. With the takeover, we hope APC can bring down power price comparable to the rate of MEZ 2,” said a MEZ 1 locator, who requested anonymity.
He said EAUC, the sole power provider of Mez 1, is charging them P6.55 per kilowatt hour (kwh), a P2 difference than what Mez 2 locators are paying at P4.55 per kwh to the National Power Corp. (Napocor).
“I think Napocor rates are now slightly lower than the P4.55,” he said, saying it is approximately between P4 and P4.30 per kwh.
If the P2 difference is calculated, he said Mez 1 firms are paying an estimated P500 million higher than what Mez 2 locators are paying.
Prior to the buy-out, Mez 1 companies have been lobbying for cheaper power rates with EAUC, the source said.
In a separate interview with Sun.Star Cebu, Rogelio Lim, EAUC and Cebu Private Power Corp. (CPPC) general manager, criticized allegations that EAUC is charging Mez 1 firms higher electricity cost.
“We are selling electricity directly to Peza (Philippine Economic Zone Authority) and not to the locators. It’s Peza who’s now selling to them. Whether gi-ginansyahan na nila or wala, wa nami labot ana,” Lim said, but declined to divulge EAUC’s selling price to Peza (We have nothing to with what Peza is charging them).
Sun.Star Cebu yesterday sought Peza’s comment but officials were unavailable for interview.
Meanwhile, Lim said the P500 million that Mez 1 locators are supposed to have saved is “overstated.”
He said electricity consumption of all Mez 1 firms average 21 million kwh per month, thus a P2 savings per kwh will only total P42 million.
In addition, the power consumption of Mez 1 firms varies every month, Lim added.
He said in April and May or during the summer months, power consumed by the firms average 21 million kwh.
On colder months, like November and December, the economic zone averages 19 million kwh a month.
However, Lim acknowledged that the P500 million savings is possible on a yearly basis.
“It’s a free market. They can choose to locate to other zones if they find the electricity here expensive,” he said.
On the buy-out, Lim commented, “We are not privy with the negotiation details.”
Meanwhile, Erramon Aboitiz, APC president, assured Mez 1 the company is willing to sit down and formally talk on the matter.
“We can’t promise anything but we can compromise on something,” he said, adding the company is strong in its determination to provide affordable power rates in the area.
APC, one of the units of the conglomerate Aboitiz Equity Ventures Inc., acquired 50 million common shares representing 50 percent of the outstanding capital stock of EAUC from El Paso Philippines Energy Company Inc. for about P131 million. It also assumed P878 million of intercompany debt owed to EAUC.
EAUC has been operating a 50-megawatt thermal plant in Mez 1 since 1997.
Aboitiz said the buy-out was in response to the growing demand for power in the province.
