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NPC working around limited budget to service off-grid areas

By Marita Moaje

January 30, 2023, 8:43 pm

<p><em>(PNA file photo)</em></p>

(PNA file photo)

MANILA – The National Power Corporation is working on short- and medium-term measures to sustain its operation and ensure that off-grid areas have continuous power supply.

In a media briefing on Monday, Department of Energy Secretary Raphael Lotilla said the high price of petroleum and diesel products is always a challenge.

He said constraints in the NPC’s Corporate Operating Budget pose a major problem in sustained operations in off-grid areas

"We are taking steps to fund a sustainable solution to address the financial woes that are crippling the operations of the NPC,” Lotilla said.

Lotilla assured the government is “undertaking remedies to ensure the delivery of its mandates despite several factors it cannot control.”

Last week, the NPC secured the approval of the Department of Budget and Management to use the previous year's national government subsidy, amounting to PHP1.112 billion, to cover due and demandable fuel payables.

The subsidy is a special provision in the General Appropriations Act to cover the additional funding requirements.

The NPC, along with the private sector through the new power providers and qualified third parties, is responsible for the power generation function in around 169 off-grid areas while the electric cooperatives and local government units are for distribution.

Lotilla said the approved and allocated funds of the NPC for its fuel expenses and subsidies are insufficient to cover the entire year's requirements due to the continuous fuel price increase.

The NPC report as of Jan. 25 showed the agency’s outstanding fuel payables for the operation of NPC-Small Power Utilities Group power plants and barges have reached PHP1.031 billion for billing months November and December 2022. (PNA)

 

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