NG urged to hasten Napocor sale

Industrialist Raul T. Concepcion is urging the government to fast track the privatization of the National Power Corp. (Napocor)’s generating assets to gain open access and retail competition by 2008.

Concepcion said if the Power Sector Assets and Liabilities Management Corp. (PSALM) would follow its privatization program, it should sell more than 70 percent of its generating assets within the year.

Under the Electric Power Industry Reform Act (EPIRA) of 2001, PSALM should dispose of 70 percent of Napocor assets before going into open access as this would ensure that there would be real competition and level playing field in the power industry.

Quoting a privatization blueprint of PSALM as of end-December 2006, Concepcion said that from January to June 2007, the government should have sold 2,724 megawatt (MW). These assets include: Bataan Thermal, Manila Thermal, Tiwi Geothermal, Makban Geothermal, Angat Hydro, Calaca 1 &2; Masinloc 1 &2; Ilijan 1 & 2 and Cebu II.

From July to December this year, PSALM should have been able to dispose of 1,500 MW based on its program. These assets are: Palinpinon Geothermal, Tongonan Geothermal, Bohol Diesel, General Santos Diesel, Mirant 1 &2 and Sucat.

"If we follow the PSALM privatization program by the second of the year, we will have reached the 81-percent precondition for us to go into open access compared to the 70 percent prescribed in the EPIRA. So we will meet on December 2007 the 81 percent, and if that is attained, the true open access and retail competition will take place — which benefit everyone such as industries, residential, commercial and hopefully those consuming 100 kilowatts to 200 kw," he said.