DOE wants Napocor to get credit lines from banks

MANILA, Philippines — The Department of Energy (DOE) wants the state-run National Power Corp. (Napocor) to have access to credit lines of banks as it pursues its mission of  bringing light to far-flung islands and communities in the country.

“We want to inform you that we are also seeking authority for National Power Corp. to be able to at least get a credit line from banks because right now, it cannot even avail of that, because of the Department of Justice opinion that was issued in the past,” Energy Secretary Raphael Lotilla said during a budget briefing at the House Committee on Appropriations last week.

“So we will try to remedy all of those because as an operating corporation, you cannot do without a credit line at all. We have to go through the painful process of having supplemental budgets approved by the board and the DBM (Department of Budget and Management),” Lotilla said.

Napocor, as mandated by the Electric Power Industry Reform Act of 2001 or Republic Act 9136, is mandated to provide power generation and its associated power delivery systems in areas that are not connected to the transmission system

It manages and operates the transmission line systems of six provinces such as Palawan, Catanduanes, Masbate, Marinduque, Oriental and Occidental Mindoro.

Napocor also operates 278 Small Power Utilities Group (SPUG) plants in 189 municipalities across 35 provinces in the country.

“The SPUG areas, the good news is that we have been able to respond in a timely way and National Power Corp. is going to have its supply assured,” Lotilla said.

“We want to assure especially the island provinces that we will be attending to their needs,” he said.