APRI Terminates Power Supply Contract with Abreco

AP Renewables Inc. (APRI) issued a notice of termination of contract with Abra Electric Cooperative (Abreco), citing the cooperative’s repeated failure to settle its obligations and follow on its commitments. In a letter dated January 10, 2013, APRI stated that the termination of the power supply contract is effective immediately. The final disconnection is scheduled at 12 noon, January 24, 2013.

Juan Alfonso, Senior Vice President, explained that APRI is within its legal rights to end its power supply agreement with ABRECO after the cooperative repeatedly failed to meet its responsibilities as stipulated in the contract.

“APRI has extended every possible assistance to Abreco including the restructuring of its payables, immediate credit of rate adjustment difference and the rescheduling of the required security deposit. This is because of our desire to serve the cooperative and the people of Abra,” Alfonso said.

Abreco however, continued to renege on its payments, issuing to APRI a total of 15 un-funded checks during the duration of the contract. A commitment to enroll at the
Wholesale Electricity Spot Market (WESM) was also not realized.

APRI has issued a total of six disconnection notices to ABRECO. A disconnection was effected last December 10, but power was restored after the cooperative committed to restructure its payables and enroll itself in WESM, among others.

APRI operates the Tiwi‐Makban geothermal power plants in Batangas, Laguna and Albay. It supplies one hundred percent of the power needs of Abreco, which serves the whole province of Abra.

For reference

Willy A. Rodolfo
Manager – Corporate Branding & Communication
+63 917 634 8395

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