Napocor adopts 4-pronged plan to stabilize power supply

State-owned National Power Corp.(Napocor) is expected to implement a four-pronged strategy that would ensure the continuous supply of efficient, reliable and quality electricity to all of its customers all over the country.

In a speech during the Napocor Management Conference, Napocor president Rogelio M. Murga urged the executives of the state-owned power firm to implement belt-tightening measures to maximize Napocor’s savings.

"In her inaugural address, President Arroyo called for frugality. Let us heed this call. We will continue doing what we did last year, and exceed the P600 million in savings that we realized through various cost-cutting measures," Murga said.

The two-day mid-year management conference was attended by some 200 top- and middle-level executives, and was held at the Napocor main office in Diliman, Quezon City to save on costs.

The conference aimed to address the different organizational development issues facing Napocor in the light of the restructuring of the power sector.

Murga also called on Napocor’s marketing personnel to step up the firm’s energy sales to increase revenues, in view of the aggressive competition posed by private power producers.

"In the past, we could afford to just sit and wait for the customers to come to us because we were a monopoly. But now, we can’t do that anymore, we have to go out and sell, sell, sell. We have to reach out to potential customers, and continue servicing efficiently the requirements of existing customers," he said.

According to Murga, among the additional customers being eyed by Napocor are power-intensive companies with embedded generating units (i.e., those who generate their own power).

Murga said such companies might find it more practical to source their electricity supply from Napocor, given the rising cost of fuel used in running self-generating units.

The Napocor chief said the firm should intensify its collection efforts, particularly in relation to delinquent distribution utilities and electric cooperatives.

"We can’t continue operating without collecting our receivables. Without our collections, we will have no cash flow to pay for our day-to-day operations and to pay for our loans," he added.

Murga said Napocor will be more firm in exercising its policy of disconnecting customers with delinquent accounts.

Napocor, he said, will continue to pursue various initiatives aimed at organizational development, including training programs that will eventually transform its 3,700-strong workforce into world-class employees.

"It is incumbent upon us to train our employees to improve their performance," he said.