The Energy Regulatory Commission (ERC) and the Department of Energy (DOE) must come up with a solution to resolve the growing problems of unpaid off-grid power supply charges, according to Isidro Consunji, DMCI Power Corp. chief executive officer.
Consunji said for DMCI Power alone, the National Power Corp. (NPC) has overdue charges covering four and half months, at more than P1.2 billion, for the company’s power off-grid power plants in Masbate, Mindoro and Palawan.
NPC subsidizes the cost of power in off-grid areas using the universal charge collected from all electricity consumers nationwide.
Consunji cited DOE Secretary Raphael Lotilla’s announcement the NPC can borrow money from various sources to pay off debts.
But Consunji said the proposed increase in the universal charge must also be pursued.
“It is really not enough right now, … fuel cost has gone up by three times its previous cost.
The only problem is this is very political as it will cause an increase in power rates ranging from 25 to 30 centavos for all consumers,” Consunji warned.
NPC earlier said it needs additional budget in 2023 to sustain operations of its 278 Small Power Utilities Group (SPUG) plants and prevent a widespread power interruption.
SPUG power plants are located in islands and communities not connected to the main transmission grid.
NPC also operates the transmission systems of six provinces and provides electricity to around 1.3 million households in the countryside.
NPC said it needs higher budget due to the volatility of fuel prices currently twice as much as the initially available funds.
The state-run firm said fuel price accounts for almost 70 percent of the corporation’s operational costs for both its SPUG plants and new power provider subsidies.
NPC is considering measures like a credit line from the Landbank of the Philippines, immediate approval of tariff applications befor e the ERC and reimbursements for the advances it made in the maintenance of the Bataan nuclear power plant from 2011 to 2023 costing P404 million. -Jed Macapagal
