ER 1-94 Corporate Social Responsibility Therma South, Inc. Sustainability

Therma South, host communities ink ER 1-94 MOA during Partners Fellowship

November 11, 2019

AboitizPower subsidiary Therma South, Inc. (TSI) signed a Memorandum of Agreement (MOA) with its host beneficiaries Brgy. Binugao, Toril, Davao City & Brgy. Inawayan, Sta. Cruz, Davao del Sur on the revised provisions of Energy Regulations 1-94 (ER 1-94) last October 11, 2019.

ER 1-94 is an initiative of the government through the Department of Energy that aims for Generation Companies (GenCos) and their respective host communities to work and help each other. Distribution utilities and host beneficiaries receive financial benefits equivalent to one-centavo per kilowatt-hour (P0.01/kWh) generated by the Generation Company. The revised provisions introduced direct remittances of financial benefits to host communities for their immediate utilization.

AboitizPower Coal Business Unit President and Chief Operating Officer Danel Aboitiz inked the MOA with Kap. Remegio Saniel and Kap. Danilo Baquial, punong barangays of Brgy. Binugao and Brgy. Inawayan in a ceremonial signing during TSI’s Partners Fellowship Program this year. TSI will also be signing the MOA with the rest of its host beneficiaries of Davao City and Sta. Cruz, Davao del Sur.

Now on its 2nd run, 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. 

“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.