TransCo profit drops 15% in 2007

ABS-CBN News

Posted at Jun 03 2008 08:42 PM | Updated as of Jun 04 2008 04:42 AM

State-run National Transmission Corp (TransCo) said Tuesday its net income after tax fell 15 percent to P16.78 billion in 2007 from P19.45 billion in 2006.

For the first three months of 2008, TransCo said it recorded a 5-percent rise in power delivered to the country's major electricity grids to 28,108.4 megawatt (MW)-months from 26,829.2 MW-months in the same period in 2007.

Power delivery, measured in MW-months, refers to the sum of TransCo's monthly billing to its customers (12-month rolling average demand).

TransCo's corporate planning group reported that power delivered to the Luzon grid during the first quarter reached 20,924.7 MW-months, a 4.4 percent increase from the previous year's level of 20,041.3 MW-months.

Delivery to the Visayas and Mindanao grids also went up, by 6.0 percent and 5.7 percent respectively, over the year-ago level.

With the forthcoming privatization of the transmission grid, TransCo expects to maintain efficient operations, improve system security, and expand the high-voltage power highways to keep up with the ever-growing power demands of customers.

TransCo's biggest customer is Manila Electric Corp. (Meralco), which accounts for 74 percent of TransCo's total delivery in Luzon.

Meralco's demand for power delivery service in the Luzon grid increased by 5.5 percent or 800.9 MW-months from that of 2007.

About 60 percent of power delivery billed to Meralco was from National Power Corp. (Napocor) while the remaining 37 percent was from the three Meralco independent power producers.

The Napocor-generated power wheeled by TransCo to Meralco went up by 10.3 percent or by 915.2 MW-months compared with the 2007 level.

In the case of non-utility customers, power delivery service requirements went up slightly by less than one percent from the 2007 level of 780.4 MW-months. The minimal growth was due to lower than expected demands from TransCo's major customers in the steel and chemical industries, among others.

In the Visayas grid, TransCo delivered 3,125.1 MW-months of power, up by 6.0 percent over the year-earlier level.

The power delivery growth is attributed to higher demand of distribution utilities (DUs) particularly Central Negros Electric Cooperative and Panay Electric Company, which registered increases of 25.3 MW-months and 58.9 MW-months, respectively. New customer SC Global Coco Products also contributed additional load of 2.3 MW-months.

In the Mindanao grid, power delivery also rose 5.7 percent to 4,058.7 MW-months due to the increase in the demands of DUs and industrial customers.

Electricity wheeled to DUs grew by 4.4 percent or by 137.2 MW-months. Power delivered to industrial customers increased by 11.4 percent or by 81.9 MW-months.