NPC averts power blackout in 21 islands

CALAPAN CITY ,Philippines  – The threat of a power shutdown in 21 islands across the country has been averted after the cash-strapped National Power Corp. (NPC), realigned its projected capital cost to buy the needed fuel.

In an emergency news conference called over the weekend by the Oriental Mindoro Electric Cooperative (Ormeco), Romeo Cuasay, Ormeco general manager, announced that the threat of massive blackout after Aug. 30 has been prevented with the NPC's move.

Cuasay said some 21 Small Power Utilities Groups (SPUG) being serviced by NPC, which in turn were providing for the needs of 39 electric cooperatives, were supposed to have been affected had NPC’s fuel stock been emptied.

He said Urbano Mendiola, NPC vice president for SPUG informed him that NPC decided to realign their own meager funds to replenish their fuel stocks while waiting for the release of an initial P1.6 billion from the Department of Budget and Management (DBM).

The DBM approved the release of more than P3 billion to infuse NPC of the needed fuel funds. The initial P1.6 billion will be released after the bidding of fuel suppliers set on Sept. 5.

Local officials of the affected islands, led by Oriental Mindoro Gov. Alfonso Umali, Jr. and Rep. Rodolfo Valencia earlier called on DBM Secretary Florencio Abad, Energy Secretary Jose Almendras and officials of Energy Regulatory Commission to do something on the impending power crisis in more than 30 island provinces in the country. 

Umali and Valencia expressed alarm over the news that NPC has no more funds to purchase oil or petroleum this month.