Subic power firm cuts losses due to pilferage

By Alena Mae S. Flores

Customers of Aboitiz-owned Subic EnerZone Corp. (SEZC) have started paying lower electricity bills since March after the company announced that it was able to reduce its system losses.

In a statement, SEZC reduce its system losses caused by pilferage and other factors by an average of 7.87 percent, thus lower its per kilowatt-hour rate by almost 10 centavos.

When the company took over the Power Distribution System (PDS) of Subic Bay Metropolitan Authority in 2003, SEZC said it inherited a systems loss average of 15 percent. By law, a utility firm is allowed to pass on the electrical systems loss to its customers up to 9.5 percent. This cap on system loss is embedded in the computation of rates.

This means that SBMA absorbed around 6 percent of the total purchased electric energy cost since by law, they could not pass this on to customers. Following its acquisition of the power distribution in Subic, SEZC implemented a metering rehabilitation program by checking and correcting all kwhr meter installations of all its customers.

As a result, SEZC was able to reduce the PDS system loss to an average of 7.87 percent. “ It is important to note that SEZC does not benefit directly if losses are below the 9.5 percent cap since by law it is required to give this benefit to customers through a reduction of its power rates,” SEZC said.

SEZC is a consortium led by Davao Light & power Co., Aboitiz Equity Ventures and Mirant Philippines, witch manage the power distribution system within the Subic Bay Freeport Zone.

In May 2003, it won, through competitive bidding, the power distribution services for the Freeport Zone for a period of 25 years.