Napocor sales down 14% in 2002

The energy sales of the National Power Corp. dropped by 14 percent last year due mainly to the lower offtake by Manila Electric Co. to a record low of 14 percent as of end-December 2002 due to the lower energy offtake by the Manila Electric Co. (Meralco).

Based on its preliminary data, Napocor generated sales of 34,369 gigawatthours (Gwh) for the 12-month period, 13.96 percent lower than its total sales of 39,948 Gwh in 2001.

This is the first time in a decade that Napocor experienced lower sales as the power utility has performed strongly even during the power crisis years of the early 1990s. Since 1996, the power firm has posted an average growth rate of four to five percent.

The data showed that the Luzon grid accounted for the sharpest decline, with sales reaching 24,617 Gwh, 18.9 percent lower than the year-ago figure of 30,371 Gwh. This was a result of Meralco’s decision to get lower than what the 10-year power purchase agreement with Napocor provided for.

Under the agreement, the country’s biggest distributor must purchase at least 85 percent of its requirement or 3,600 MW from Napocor. This contract is effective until December 2004 but Meralco decided in early 2002 to source a bigger chunk of its power requirements from its own IPPs such as Duracom, Quezon Power Phils. Ltd, and First Gas Power Corp.

As a result, its offtake was lower by 25 percent as it bought only 16,701 Gwh compared to 22,219 Gwh in 2001.

At present, Napocor and Meralco are searching for a way to resolve their differences regarding the long-term supply contract.

"Napocor is committed to the government’s effort to exhaust all options in order to bring down electricity rates in the country. We want this concern resolved as soon as possible," Napocor president Rogelio M. Murga said.

In the other grids, total sales volume in the Visayas hit 3,649 Gwh in 2002, a slight decrease compared to the previous year’s 3,753 Gwh. Mindanao, on the other hand, showed an uptake of 4.3 percent as energy sales climbed to 5,614 Gwh from 5,378 Gwh in 2001.