MANILA, Philippines — To plug cash shortfall in the operating budget of state-run National Power Corporation (NPC), a supplemental budget of P7.0 billion is being pushed to be included in the General Appropriations Act.

Energy Secretary Rene D. Almendras noted that the additional budget for the power firm does not necessarily entail new cash allocation.

“The money is there, it would just have to be included in the national budget so NPC will have the leverage to spend it,” the energy chief has noted.

Based on estimates, the company will be requiring P17 billion for its off-grid operations next year. Of the amount though, P14 billion, which is still P3.0 billion shy from original calculation has been integrated in the power firm’s allocation.

Since its application for universal charge for missionary electrification (UCME) was not immediately approved by the Energy Regulatory Commission (ERC), the original allocation has been lower, hence, the need to integrate the proposed supplemental budget.

It must be noted that some off-grid areas being served by NPC have been encountering problems when it comes to their power supply. Because of the budgeting hurdles though, the power firm noted that it was not able to immediately come to the rescue of such embattled power utilities.

Beyond the amounts already allowed for pass-on by the Energy Regulatory Commission (ERC), the company applied for fresh round of UCME recoveries which will inject fresh cash of P4.299 billion in NPC’s coffers. The cost impact to SPUG customers will be P0.0693 per kWh.

The power firm specified that this will be in addition to the initial P4 billion that was first allowed by the regulator to be included in the bills of electricity consumers.

Rendering service to off-grid areas, and the energization of far-flung communities, had been placed under the charge of state-run NPC – a provision under the Electric Power Industry Reform Act.

But since the energization of such areas will be highly-expensive, a non-bypassable subsidy charge called the UCME has been prescribed to be shouldered by all Filipino consumers to sustain NPC’s service provisions in these domains. (MMV)