SEN. Sherwin Gatchalian committed to provide additional funds to the National Power Corporation (Napocor) to sustain its operations and avert possible power outages and plant shutdowns by mid-2023.
Gatchalian, vice chairperson of the Senate committee on finance, made the assurance after the Department of Budget and Management slashed Napocor’s proposed budget for next year from P44.7 billion to P32.2 billion.
Gatchalian said Napocor supplies electricity to remote areas using power generators using diesel fuel, prices of which have soared the past months.
He noted that the Napocor budget was computed when the price of oil was only at $40 per barrel. Oil now costs more than $90 per barrel.
“Kulang talaga ‘yung hinihingi ng Napocor kasi yung around 1.4 million na households mawawalan ng kurtyente (The proposed budget of Napocor is really short because around 1.4 million households will experience power outages),” Gatchalian told radio dzBB.
During the Senate budget briefing last Friday, Jenalyn Tinonas of Napocor’s financial planning, budget and programs review division, said there might be a shutdown of 278 existing plants by the end of July 2023 “because the budget for our diesel fuel will only cover January to July 2023 operations.”
“There will be a deferment of scheduled energization of 44 new unserved areas, affecting 15 areas in Luzon, 14 in Visayas, and 15 in Mindanao,” she added.
Gatchalian identified savings, loans, government subsidies, and collection of unpaid debts as among the funding options to sustain Napocor’s operations.
He said he will look for other sources of fundings when the Senate tackles the Napocor budget in the plenary.
“I’ll make sure na may sapat silang pondo para makabili ng krudo… tingin ko hindi lahat mabibigay, pero gagawin ko lahat kasi agawan ng pondo sa budget hearing… kukuha sa ibang ahensiya at ilalagay sa kanila (I’ll make sure Napocor will have enough budget so it can buy diesel fuel…But not all the slashed budget will be given but I will find ways… We will get funds from other agencies and realign them to Napocor),” he said.
“Dapat sa short term makabili tayo ng krudo, ang long-term solution is renewable energy para di nakasalalay sa krudo (The short-term solution is to buy diesel fuel, but the long-term solution is renewable energy so we will not be dependent on crude oil),” he also said.
Gatchalian has filed a resolution seeking to unlock the oil and gas potential in the West Philippine Sea aimed at freeing the country from being dependent on imported fuel.
He said the measure is intended to push exploration, development, and utilization of oil and gas reserves in the country to achieve energy security and self-sufficiency.
“Given persistent global energy shocks, it is important for us to ascertain the oil and gas potential in the West Philippine Sea for the country to have some level of stability and protection from the tumultuous geopolitical conflict in foreign countries that has severely impacted local energy prices,” Gatchalian said.
Data from the Department of Energy (DOE) show there is an estimated 6,203 million barrels of total oil resources and 12,158 billion cubic feet of total gas resources in the West Philippine Sea as of 2021.
At present, there are five petroleum service contracts in the West Philippine Sea. These are Service Contract 54 held by Nido Petroleum Philippines Pty Ltd. in Offshore Northwest Palawan, Service contract 58 held by Nido Petroleum in West Calamian or Northwest Palawan, Service Contract 59 held by the Philippine National Oil Company-Exploration Corp. in Southwest Palawan, Service Contract 72 held by Forum (GSEC101) Ltd in Recto Bank, and Service Contract 75 held by PXP Energy Corp. in Northwest Palawan.
