Napocor assures House: No 'brownouts' despite P10-B budget shortfall
At A Glance
- Despite staring at a massive P10-billion budget shortfall for the rest of the year no thanks to runaway fuel prices, the National Power Corporation (Napocor) assured House of Representatives members on Wednesday, April 8 that there will be no power interruptions in its service areas.
(Unsplash)
Despite staring at a massive P10-billion budget shortfall for the rest of the year no thanks to runaway fuel prices, the National Power Corporation (Napocor) assured House of Representatives members on Wednesday, April 8 that there will be no power interruptions in its service areas.
Giving his word to the 13-committee Legislative Energy Action Development (LEAD) Council was Napocor President and Chief Executive Officer (CEO) Jericho "Koko" Nograles.
"At this point in time, wala po tayong bolang bilog, di natin alam gaano--ano ang mangyayari na sa giyera (we don't have a crystal ball, we don't know how long--what will happen to the war), but the only thing we can do is manage. But I will assure the members of Congress that there will be no 'brownouts' due to fuel supply in Napocor-served areas," declared Nograles, himself a former congressman.
During the LEAD Council hearing Wednesday afternoon, APEC Party-list Rep. Sergio Dagooc asked Nograles point blank whether or not Napocor still had ample budget to perform its electrification mandate, given that pump fuel prices have practically double since March because of the tensions in the oil producing Middle East.
"Napocor budgeted P60 per liter for the diesel. We were planning enough elbow room for a 50 percent increase just in case a Ukraine war situation would happen again. That's part of our forward thinking," Nograles replied.
"So we have prepared prior to the (United States-Israel-Iran) war an allowance for fuel to reach P92. Currently, Napocor is purchasing fuel at P127 per liter, and at P127 per liter--if it stays the same--we will have a budget shortfall. Specifically our estimate is about P10 billion for the remainder of the year," he noted.
The Napocor official says this translates to a shortfall of approximately P1.4 billion per month.
"So we have been operating on this very intense situation since March. But the full effects of the war is going to be felt financially by Napocor this coming May. I am looking at a budget shortfall of P1.4 billion in May," he said.
Napocor President Jericho "Koko" Nograles (PPAB)
According to Nograles, Napocor for the past month has "resorted to extreme austerity measures" to extend its savings.
"That is the least we can do, to keep the lights on. Because when the war broke out, I sought guidance from my board and my board told me, bawal ang brownout (brownouts are prohibited)," he said.
"To answer the good congressman's question, Napocor will do bawal and brownout (Napocor will observe the no brownout policy)," Nograles told the lawmakers.
US and Israel attacked Iran last Feb. 28. The tensions quickly spilled over to the Middle East, which led to the fuel price crisis.
Nograles said that since then, Napocor only recorded two power interruptions or brownouts--once in Quezon's 1st district and once in Palawan's 2nd district.
"Both of them, both power interruptions were not lack of fuel supply. They were both technical or logistical problems, but not a lack of fuel supply," stressed the ex-lawmaker.
Napocor is a government-owned and controlled corporation (GOCC) in the Philippines tasked with providing electricity nationwide, especially to rural and remote areas, through its “missionary electrification” program.