Connect with us

Hi, what are you looking for?

Economy

PCC approves ACEPH, Axia JV for power plant

THE Philippine Competition Commission (PCC) has approved the joint venture (JV) between Ayala-led AC Energy Philippines, Inc. (ACEPH) and the Philippine energy unit of Japan-based Marubeni Corp. that is looking to build a diesel-fired plant in Rizal.

ACEPH told the stock exchange on Wednesday that the PCC said the venture would “not likely result in substantial lessening of competition” and it “would resolve to take no further action with respect to the transaction.”

In the Nov. 24 decision, PCC said that there are competitive restraints from other electricity players through  bilateral contracts and the Wholesale Electricity Spot Market (WESM).

“Bilateral contracts set fixed power supply generated by the project to pre-identified clients, while the regulation of the power bids in WESM disallows any room for the plant’s excess power to be rigged for profit,” the commission said.

“This joint venture supports the company’s strategic objective to be the growth platform of the AC Energy Group in the country,” ACEPH said.

“The company will have the opportunity to develop a greenfield project which will provide peaking and reserve power in partnership with Axia, which has extensive experience in the local and international power sector,” it added.

ACEPH in July signed a shareholders’ deal with Axia Power Holdings Philippines Corp., which will buy half of both shares and economic rights in Ingrid Power Holdings, Inc., the Ayala unit’s corporate vehicle for the 150-megawatt Ingrid diesel-fueled power plant project in Pililla, Rizal.

It also agreed to provide 5% of the economic rights in the project to ACE Endevor, Inc., one of its subsidiaries, while the company will hold the remaining 50% of the shares and 45% of the economic rights.

The Rizal plant will supply peaking and reserve power to the Luzon grid. It is expected to go online in the first quarter of 2021.

The Ayalas and the Marubeni unit had jointly run the coal-fired power plants of South Luzon Thermal Energy Corp. in Batangas until AC Energy bought Axia’s stake in the project in November 2019.

In October last year, ACEPH, formerly Phinma Energy Corp., acquired the shares of AC Energy, Inc. in ACE Endevor, which is then AC Energy Development, Inc., and Ingrid Power, in a share-swap agreement. In December 2019, the listed energy company infused P570 million into Ingrid for the construction of the said power generator.

ACEPH shares closed at P6.23 apiece on Wednesday, down 13 centavos or 2.04%. — Jenina P. Ibañez with a report from A.Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A cabinet split is hampering the government’s efforts to deal with the nationwide shortage of lorry drivers that threatens fuel supplies at some petrol...

Investing

Pubgoers are flocking back to their locals, according to figures that drew a cautious toast from the industry but also prompted warnings of fresh...

Investing

Ministers are backing a multibillion-pound plan to build another large-scale nuclear power plant in Britain to ease pressure on electricity supplies as the country...

Economy

The Philippines’ balance of payment position (BoP) hit $1.044 billion in August, the highest in four months, due to increased special drawing rights (SDR)...

Economy

Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus...

Economy

The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears....

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!