THE National Power Corp. (NPC) is hopeful the Energy Regulatory Commission (ERC) can soon act on petitions to raise power rates of Small Power Utilities Group (SPUG) power plants to enable the state-run firm raise enough money for its fuel requirement.
Fernando Martin Roxas, NPC president and chief executive officer, told reporters in a recent interview hearings on the petition are ongoing.
SPUG power plants are located in islands and communities that are not connected to the main transmission grid which are mostly powered by diesel-fired generators.
Roxas said NPC’s current rates for SPUG plants are at P36 per liter of diesel. The NPC, however, is procuring at P68 per liter plus P6 to P7 additional hauling fees from depot to the islands.
“So, we are only recovering less than one-third of our cost so we are losing a lot of money,” Roxas said.
Roxas said NPC recently secured a P15- billion loan to procure fuel but without any rate increase, this will not be enough to sustainably purchase fuel.
Roxas said an increase of at least 8 centavos per kilowatt hour in SPUG power plants – which can raise around P8 billion – is needed this year to buy fuel supply for next year.
Current SPUG charges date back to 2014. NPC has been filing for an increase every year the past 10 years.
The ERC said hearings will continue until October for the proposed new Subsidized Approved Generation Rates for SPUG areas in Mindoro, Marinduque, Palawan, Catanduanes, Masbate, Romblon, Tablas, Camotes, Siquijor, Bantayan, Basilan, Sulu and Tawi-Tawi, among others.
The adjustment will push power power rates for off-grid consumers.
ERC chairperson Monalisa Dimalanta said the price based on costs collected from off-grid consumers has not been adjusted since 2005 and 2011 with the deficiency being made up from the Universal Charge for Missionary Electrification (UCME) collected from on-grid consumers.
UCME which is currently at P0.2233 per kilowatt hour, is being used to subsidize the operations of SPUG plants.
NPC supervises 278 SPUG power plants nationwide.
