Napocor: P1.6 B in Malampaya funds to help power remote isles

Power plants on islands unconnected to any of the major grids of the National Power Corporation (Napocor) will get fuel, critical spare parts and rented generators because the state-run firm has received P1.6 billion in proceeds from the Malampaya gas project in Palawan. Napocor president Froilan Tampinco said the funds represent reimbursements on advances made to preserve the mothballed Bataan nuclear power plant. He said the company will channel the royalties to its missionary electrification arm, the Small Power Utilities Group (SPUG). “It will be spent for the fuel until the end of the year. The entire P1.6 billion will cover three major components, one is fuel (P1.3 billion), and the balance is for 50 percent of our critical spares, and 50 percent of our requirements of our genset rents," Tampinco said. He said the Malampaya proceeds and recovery of P1.436 billion from the recent provisional approval of the universal charge for missionary electrification (UC-ME) are not enough. Remote isles need P1.6B monthly Tampinco explained the missionary operations on remote islands, including Siquijor, Masbate, Basilan, and Sulu, need P1.6 billion per month or P6.34 billion until yearend. Napocor may be “constrained to reduce its operating hours or to shut down entirely some of its generating plants" if it is unable to get the P1.6 billion needed per month, Tampinco said. “SPUG operates 242 power plants with a combined capacity of almost 200 megawatts in far-flung islands that are not connected to any of the main grids in Luzon, Visayas and Mindanao," NPC said on its webpage for missionary electrification. This year, Napocor intends to increase to 2,164 kilowatts from 1,108 kilowatts the generating capacities of its four diesel-fueled power plants in Basilan, Sulu and Tawi-Tawi, and commission six new power plants in Masbate. P 0.0709 per kwh/month Last August 1, the Energy Regulatory Commission (ERC) provisionally approved P4.146 billion of P17.07 billion Napocor requested so it could cover shortfalls in its missionary electrification subsidy accumulated from 2003 to 2009. The ERC said in a statement that it “directed all distribution utilities and the [National Grid Corporation of the Philippines] to collect UC-ME charge in the amount of PhP0.0709/kWh per month from its customers commencing on the August 2011 billing period…" The distribution utilities will then remit the monthly collections to the Power Sector Assets and Liabilities Management Corporation (PSALM) on or before the 15th day of the succeeding month until otherwise ordered by the ERC. The ERC said it “saw the need to provide Napocor-SPUG with immediate relief so it can continue its mission of providing electricity to the far-flung and mostly island group SPUG areas." Napocor said it expects to get P359 million per month or P1.436 billion from August to December this year from the missionary electrification charge. — ELR/VS, GMA News