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Napocor seeks to tap P14B calamity fund

Plan to ensure power supply during the elections

By Amy R. Remo
Philippine Daily Inquirer
First Posted 19:34:00 11/02/2009

Filed Under: Electricity Production & Distribution

STATE-RUN National Power Corp. (Napocor) plans to tap as much as P6 billion from the government?s P14-billion calamity fund to implement a two-year contingency plan that will ensure steady supply of power during the elections in May 2010.

?We already submitted a plan and we have discussed it with the Commission on Elections,? said Napocor president Froilan A. Tampinco.

?The plan will require a few megawatts of mobile capacities, which we can move from one area to another to make sure that any [power supply] problem in any areas can be addressed,? Tampinco said.

The outlay of about P6 billion will provide for interim power supply arrangements, particularly during and after the elections in May 2010, even before the capacities of the committed power projects come in, he added.

?Remember, when we talk about contingency, we?re not just talking about our capabilities to supply generating capacities but also the capability of National Grid Corporation of the Philippines to make sure that power is [transmitted] properly,? Tampinco said.

Initially, the two-year contingency plan was estimated to require some P3 billion, according to Energy Secretary Angelo T. Reyes.

Reyes said the proposed budget could be used to rehabilitate or upgrade existing power plants or to put up so-called ?security power gene-rating facilities.?

The funds will also be used to improve transmission lines to ensure the efficient delivery of electricity.

?The contingency plan is a plan to address the situation if the indicative projects do not come in. It also ensures redundancy in the supply of power. As you know, in the power business, it has to be failsafe as we cannot afford brownouts, so there is a need for redundancies,? Reyes said.

?And we stated [to Congress] the problem clearly that we might be experiencing power supply problems [next year], so these have to be addressed. We [told them about the] contingency plan and laid out the situation as we see it,? he added.

Reyes first brought up the idea of a contingency plan and additional budget in Congress when he revealed that the country?s power supply was expected to become critical next year.

The energy chief explained that the committed power generation projects were seen to produce only 1,020 megawatts (MW), falling short of the required additional capacity of 4,100 MW.

?We have to ensure that there is adequate and secure supply of power that would be available for the conduct of a political exercise as important as a national election,? Reyes said.



Copyright 2012 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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