Host communities can now directly access revenue shares from Therma South Power Plant under ER 1-94 MOA 

November 8, 2019



FORGING PARTNERSHIPS. AboitizPower subsidiary Therma South, Inc. (TSI) enters a memorandum of agreement with its host communities Brgy. Binugao and Brgy. Inawayan for ER 1-94 last October 11, 2019.

The host communities of AboitizPower’s Therma South power plant can now directly access their share from the revenue of the facility, thanks to new revisions to Energy Regulation 1-94, implemented by the Department of Energy.

In a signing ceremony last October, barangays Binugao, Toril, Davao City and Inawayan, Sta. Cruz, Davao del Sur have agreed to set up their bank trust accounts where TSI will regularly download their revenue shares.

Similar trust accounts will also be set up for the city of Davao, the municipality of Sta. Cruz, and the province of Davao del Sur. The local government units can use the money to fund environmental, livelihood, and electrification projects in their locality.

ER 1-94 is a mandate under law that requires Generation Companies (GenCos) to remit at PHP 0.01 / kWh of revenue to its host communities.

AboitizPower Coal Business Unit President and Chief Operating Officer Danel Aboitiz inked the MOA with Brgy Captain Remegio Saniel of Binugao and Brgy Capt. Danilo Baquia during TSI’s Partners Fellowship Program this year.

Now on its second year, TSI’s Partners Fellowship Program aims to gather and show appreciation to the various agencies and groups that have been the company’s partners for progress throughout the years, since the plant’s inception and now during its operation. 

Heads and representatives from both Davao and Davao del Sur coming from government agencies, business councils, environmental management groups, the Philippine Army, Philippine National Police, the academe, and the Matigsalug tribe among others all participated in the event and bore witness to the ceremonial MOA signing. 


PARTNERS FOR PROGRESS. Davao City Vice Mayor Sebastian “Baste” Duterte and AP Coal BU President and COO Danel Aboitiz share a light moment during TSI’s Partners Fellowship Program.


“AboitizPower is here for the long-term. We are excited for our host beneficiaries to utilize their ER 1-94 funds and will accelerate what we can to help the communities utilize the available funds that are rightfully theirs,” said Danel Aboitiz.

The company’s good relationship with its partners has allowed them to responsibly operate the 300-megawatt Davao Baseload Power Plant and positively impact its host communities of Barangay Binugao in Toril, Davao City and Barangay Inawayan in Sta. Cruz, Davao del Sur.     

Since the start of TSI’s operations, the internal revenue allotment of its host communities has more than doubled. With the trust and support of its partners, TSI has also contributed to the development of Mindanao by providing 260 megawatts of energy to more than 20 electric cooperatives and distribution utilities, all the while doing so with zero exceedance of environmental standards since the start of its operations in 2016. 

Wholly-owned AboitizPower subsidiary Therma South, Inc. (TSI) is the owner and operator of the 300-Megawatt Davao Baseload Power Plant located in Binugao, Toril, Davao City. TSI is also certified in three ISO standards, namely Quality Management (ISO 9001:2015), Environmental Management (ISO 14001:2015), and Occupational Health and Safety Management (OHSAS 18001:2007). Along with Therma Luzon, Inc. and Therma Visayas, Inc., the three primarily form the Coal Business Unit of AboitizPower. 




About AboitizPower
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. It advances business and communities by providing reliable and ample power supply at a reasonable and competitive price, and with the least adverse effects on the environment and host communities. 

The company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country. It is a major producer of Cleanergy, its brand for clean and renewable energy with several hydroelectric, geothermal and solar power generation facilities. It also has thermal power plants in its generation portfolio to support the baseload and peak energy demands of the country.

The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.




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