Aboitiz expects improvement in power demand, sales

MANILA, Philippines — Aboitiz Power Corp. is expecting an improvement in electricity demand and sales under its power distribution business this year, hinged on the continued economic growth in its franchise areas, its top official said.

AboitizPower president and chief operating officer Antonio Moraza said the group is seeing overall growth rate to hit five percent this year.

“I think we’re projecting five percent. As for the drivers, one is obviously the economy… Some areas are growing faster than others,” he said.

The company’s power distribution business experienced a slower growth rate last year compared to the previous year, which was an election year, Moraza said.

“Last year was a slow year, about four percent,” he said. “2016 was big, it was an election year… about eight percent.”

The company chief said the growth rate was the average across the distribution utilities (DU) under the company.

But among its largest DU, Moraza said Davao Light and Power Company had a better growth rate than that of Visayan Electric Co. Inc. (VECO).

“I think Davao Light last year grew more than VECO… These were projects that were in line in Davao before President Duterte became president. There were malls, apartment buildings, hotels… there were a lot of activities in Davao,” he said.

AboitizPower is one of the largest electricity distributors in the Philippines with ownership interests in seven distribution utilities including the second and third largest in the country.

VECO, owned by Aboitiz Power and Vivant Corp., is the second largest distribution utility in the Philippines, providing the electricity needs of the cities of Cebu, Mandaue, Talisay, Naga and four municipalities of the greater part of Metro Cebu.

Davao Light and Power Co. is the third largest privately-owned electric utility in the country, which holds the franchise for distributing electric power to Davao City, Panabo City and the municipalities of Carmen, Dujali, and Sto. Tomas in Davao del Norte.

Cotabato Light and Power Co., meanwhile covers the city of Cotabato, and part of the municipalities of Datu Odin Sinsuat and Sultan Kudarat, both in Maguindanao.

It also owns San Fernando Electric Light and Power Co. Inc. (SFELAPCO), a franchise in the City of San Fernando, Pampanga and the municipalities of San Isidro and Cabalantian in Bacolor, Pampanga.