Therma Luzon, Inc. (TLI), a subsidiary of Aboitiz Power Corporation has renewed its power supply agreement (PSA) with Ibaan Electric Corporation (IEC) for another five-year duration.
According to the Aboitiz firm, it will be supplying 10.92 megawatts to the power utility, which the latter will be using in servicing the electricity needs of Ibaan town in Batangas; as well as adjacent barangays of Adya in Lipa City; and Salaban in the municipality of San Jose.
The rate for the supply deal was not specified and there was no stipulation also if it is a fixed price contract or there’s flexibility for fuel pass-through.
As emphasized by Ibaan Electric Chief Executive Officer Edelyn Jane Salvame, “the partnership with Aboitiz Power affirms both companies' role in providing Batanguenos with steady, reliable, and competitively-priced electricity supply to businesses, households, and communities in the province of Batangas.”
On the business realm of the power utility, she stated that “we are called to be partners to households and businesses for a brighter tomorrow. “
Salvame qualified that “TLI has been our supplier since 2010 and we are excited for the next five years of working together.”
The added lease on their contractual partnership, Salvame noted, “will further address the need for reliable electricity for businesses and households in our province and ultimately pave the way for sustained economic growth and improved quality of life.”
For her part, Angeli Parcia, head of Wholesale at Aboitiz Power, indicated that with this renewed partnership with IEC, the company would be able to “kick start our efforts in ensuring the delivery of reliable energy to help businesses prosper and support the day-to-day lives of families and communities.”
Overall, the parties already have 13 years of collaboration that they’ve been leaning on for their extended partnership as a supplier and capacity purchaser within the dictum of the deregulated state of the Philippine power sector.
Luzon grid is widely anticipated to be teetering on tight supply conditions, especially during the stretch of the summer months, hence, the power utilities covered with sufficient power supply deals will be on a safer zone on these critical periods.