The Subic Bay Metropolitan Authority (SBMA) and Subic EnerZone Corp. have renewed their power distribution partnership for another 25 years, extending their cooperation ahead of the existing contract's expiration in 2028.
The agreement was announced during a ceremony in Makati City on October 23. Subic EnerZone, a subsidiary of AboitizPower, has operated the Freeport's power distribution system since October 2003.
More Than 3,750 Customers Served
As of February 28, 2026, Subic EnerZone served more than 3,750 customers, including industrial and commercial locators, residential consumers, and streetlights.
SBMA Chairman and Administrator Eduardo Jose Aliño said the utility also provides electricity to communities in Zambales and Bataan.
At the end of 2025, Subic EnerZone reported system losses of 4.37%, below the 5.50% ceiling set for private distribution utilities. System losses refer to electricity lost through distribution lines and equipment before reaching customers.
AboitizPower held a 99.98% stake in Subic EnerZone as of February 28, 2026, through direct ownership and its subsidiary Davao Light and Power Co.
Early Renewal to Support Growth
Aliño said SBMA opted to renew the agreement ahead of its expiration to prepare for changing infrastructure needs.
“Our contract runs until 2028, but we are not waiting for it to end. We are moving forward with each renewal because the needs of this region keep changing,” he said.
He added that the partnership would support infrastructure modernization, reliable electricity service, and a more sustainable Freeport.
The renewal comes as Subic strengthens its role in the Luzon Economic Corridor, which is expected to support further investment and economic activity.
Grid Improvements Plannedp
Subic EnerZone Officer-in-Charge President and General Manager Jay Navarro said the company plans system upgrades and reliability improvements to accommodate rising electricity demand.
“Looking ahead, we are ready for Subic's growth. Our demand and capacity forecasts project a steady rise in power needs,” Navarro said.
Anton Mari Perdices of AboitizPower's distribution utilities group said the company would work with SBMA to strengthen distribution infrastructure and prepare for future energy requirements.
As of October 26, the parties had not disclosed the planned upgrades' total cost, implementation schedule, or any potential changes to electricity rates under the renewed agreement.
