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THE
National Power Corp. said Monday it signed a contract
with Melters Steel Corp. (MSC), a new steel factory
based in San Simon, Pampanga, for the supply of 1.8 to
4.3 megawatts (MW) of electricity.
National
Power, also known as Napocor, said the contract for the
supply of electric energy with Melters Steel took effect
on July 26 and is valid for four years and five months,
or until December 25, 2011.
Napocor
and Melters Steel signed the contract after the Energy
Regulatory Commission approved a provisional authority
to source electricity directly from Napocor.
Melters
Steel will source 1.8 MWs from Napocor from July until
December 2007. When the steel company goes into full
commercial operations next January, Napocor will supply
the factory with 2.3 MWs until the end of 2008.
By 2009,
Melters Steel’s electricity needs are expected to reach
3.4 MWs before reaching a maximum level of 4.3 MWs in
2010 and 2011.
Napocor
estimated that the supply contract will bring in
additional revenues of P157.21 million per year.
MSC is
the latest steel company to sign an electricity supply
deal with Napocor. The others include SKK Steel Corp.,
Puyat Steel Corp., Stronghold Steel Corp., Global
Steelworks Corp.—formerly National Steel Corp.—Treasure
Steelworks Corp., Elegant Steel Corp. and Philippine
Associated Smelting & Refining Corp.
Because
their operations consume a lot of power, steel
industries have traditionally preferred to source their
requirements directly from Napocor, rather than from
distribution utilities or local electric cooperatives.
As of
last August, Napocor recorded 259 customers that include
122 distribution utilities, 109 industrial customers and
28 government/miscellaneous clients. A total of 134
customers are based in
Luzon, while 62 and 63 are located in the Visayas and
Mindanao, respectively. |
