AboitizPower sees power demand growing by 5%

By Victor V. Saulon,
Sub-Editor

ABOITIZ POWER Corp. (AboitizPower) expects power demand within the franchise areas of its distribution utilities to grow by 5% in 2018, or better than the growth posted in the previous year, its president said.

“For 2018, I think we’re projecting 5[%],” said Antonio R. Moraza, who is also AboitizPower chief operating officer.

“Last year was a slow year, about 4%,” he told reporters, adding that 2017 followed a “strong election year” when power demand grew by about 8%.

Mr. Moraza attributed the higher growth projection this year to the country’s economic performance, with government economic managers expecting sustained growth after 2017’s 6.7% rise in gross domestic product.

“Some areas are growing faster than others,” he said.

AboitizPower has ownership interests in eight distribution utilities, making it one of the largest electricity distributors in the Philippines.

Based on its annual report, the company supplies power to franchise areas covering a total of 18 cities and municipalities in Luzon, Visayas and Mindanao.

Among these distribution utilities is Visayan Electric Co., Inc. (VECO), the country’s second-largest electric utility in terms of customer base. It serves the cities of Cebu, Mandaue, Talisay and Naga. Its coverage also includes four municipalities of the greater part of metropolitan Cebu, namely: Liloan, Consolacion, Minglanilla and San Fernando.

AboitizPower also owns Davao Light & Power Co., Inc., the third-largest privately owned electric distribution utility in the country.

Asked about which of the company’s distribution utilities posted the biggest growth, Mr. Moraza said: “I think Davao last year grew more than VECO.”

However, he noted the growth in power demand within Davao Light’s franchise was already seen before President Rodrigo R. Duterte, who hails from Davao City, was elected.

“These were projects that were already in line in Davao before Pres. [Rodrigo] Duterte became president,” Mr. Moraza said.

“There were malls, apartment buildings, there were hotels, there were a lot of activities in Davao. Some [were] completed [in] 2017, some [are] coming this year. There’s a pipeline,” he added.

The AboitizPower official said distribution utilities account for about 20% of the company’s bottom line, a contribution which has stayed steady from the previous years.