The Aboitiz Group’s Cleanergy 9 Power Inc. has secured clearance to acquire three key hydroelectric plants that play a crucial role in Luzon’s power reserves.
The Philippine Competition Commission approved the roughly P36-billion purchase of the Caliraya, Botocan, and Kalayaan hydro plants in Laguna province from the Power Sector Assets and Liabilities Management Corporation.
With a combined capacity of 733.95 megawatts, the plants are a major source of regulating and reserve power, making the transaction sensitive from a competition standpoint.
Addressing anti-competition concerns
Regulators flagged risks because the Aboitiz Group already dominates the Luzon ancillary services market, where reserve power prices can affect overall electricity costs.
To address this, Aboitiz agreed to binding commitments on pricing and capacity offers in the Wholesale Electricity Spot Market until a regulated tariff for the Kalayaan Pumped Storage Power Plant is approved, potentially by 2027.
The group must also file its tariff application on schedule and appoint a senior compliance officer to ensure the commitments are followed.
“By securing targeted commitments in the Luzon ancillary services market during this transition, PCC is protecting consumers from undue price risks while ensuring reliability and fair competition,” PCC chair Michael Aguinaldo said.
—Edited by Miguel R. Camus
