Napocor needs P11.5B to avert brownouts

State-owned National Power Corp. (Napocor) is seeking support from government regulators to secure P11.5 billion to purchase diesel fuel and avoid power rationing in off-grid areas next year.

In an interview at the sidelines of Enlit Asia 2024, Napocor president and CEO Fernando Martin Roxas informed reporters that the agency recently reached out to the Department of Energy (DoE) and Energy Regulatory Commission (ERC) for support.

Roxas said a letter has already been sent to the DoE, explaining that insufficient funding will force Small Power Utilities Group (SPUG) plants to scale down operations, leading to power service interruptions.

DoE assistance urgently needed

He pointed out that the urgent need for the DoE’s assistance, especially since the ERC, now under a newly appointed officer-in-charge, may take time to review the request.

“For 2025, we need P11.5 billion to be approved. Otherwise, each billion of the deficit would result in about 2.1 hours of no power,” Roxas said.

Bad in an election year

“If ERC would not allow us to collect, we have no choice. Otherwise, we will also curtail [supply], and that’s bad in an election year,” he added.

Napocor oversees 272 SPUG power plants in 222 areas across 192 municipalities in 35 provinces. These plants, located in off-grid islands and communities, are mostly powered by diesel-fired generators.

It also manages the transmission systems of island provinces such as Palawan, Catanduanes, Masbate, Marinduque and Mindoro.