Napocor to reduce power in SPUG areas

MANILA, Philippines — Fuel supply shortage and the delay in universal cost for missionary electrification (UCME) subsidy payment will result in  the reduction of electricity service in Small Power Utilities Group (SPUG) areas starting next month.

The National Electrification Administration (NEA) said the National Power Corp. (Napocor) has advised that it would implement the reduction of electricity service in SPUG areas starting Feb. 1 due to the said factors.

Officials from NEA, Napocor, Department of Energy (DOE), and the Association of Isolated Electric Cooperatives have gathered in a consultative meeting on Tuesday to resolve the power supply issues concerning the SPUG.

Napocor said it already has a crisis management and communication plan approved by the National Power Board to address the supply curtailment and the delay in UCME subsidy payment.

The UCME is one of Napocor’s sources of funds under the law, apart from energy sales collected from electric cooperatives.

Under the Electric Power Industry Reform Act (EPIRA) of 2001, UCME is collected from end-users which will be used for the electrification of remote communities or areas not connected to the main transmission grid.

Napocor has requested for a P5 billion loan solely for fuel purchases, which is expected to be given in May.

Fernando Martin Roxas, president of Napocor, had asked the electric cooperatives if they could help in advancing the payment for fuel.

NEA administrator Antonio Almeda, for his part, has directed the agency’s deputy administrator for technical services to coordinate with Napocor regarding the advance payment of the electric cooperatives as part of the short-term solution to the problem.

Almeda also asked the electric cooperatives to meet with their respective local government officials to aid in the advance payment.

The electric cooperatives were also asked by the NEA chief to inform their member-consumer-owners about the looming power crisis.

For a long-term solution, Almeda reiterated his call for the electric cooperatives to have an embedded renewable source of power.

He assured the electric cooperatives that the energy family would  do its part in resolving the power supply issue.

The Energy Regulatory Commission earlier assured the public that it would expedite the review of Napocor’s relevant petitions following due process and proceedings, in addition to looking for alternative solutions to solve the present crisis in missionary areas, while ensuring that reasonable prices and quality service will be provided.

Napocor said the continuous increase in the average price of diesel had led to the depletion of its allotted funds for fuel.

As such, it has taken measures to bridge the gap in funding through the implementation of corporate-wide austerity measures, and by looking into possible borrowing or additional subsidies from the national government.

“Napocor continues to find ways to bridge this gap in funding through any of its projected sources – approval of ERC petitions, borrowings, or additional subsidy from the national government,” it said.

Napocor is the implementing agency for missionary electrification through its unit SPUG.

Napocor SPUG is currently supplying 229 missionary areas throughout the country, most of which have yet to attain a 24-hour electric power service.