Colorful candle lights won't help subside the annoying darkness & bitterness of prolonged power interruption in the island province. The continuing inefficiency of power supply until this time had no recourse of alternative solution to end up the agony of 33, 000 member-consumers of Marelco. Not only the power distributor(MARELCO) but even the NPC-SPUG who plays an important role to act upon and yet the cause of it remains uncertain.
Data had confirmed how it does. See for yourself.
Napocor-SPUG wants to raise power rates in provinces
01/24/2011 | 05:54 PM
State-owned National Power Corp. (Napocor) and its department known as the Small Power Utilities Group (SPUG) wants permission from the Energy Regulatory Commission (ERC) to raise it power generation costs in rural areas as a way of recovering its production and foreign exchange costs.
In separate applications filed with the commission on Jan. 14, which the ERC released Monday, Napocor-SPUG said it wants to recover over P2.129 billion the State power firm used to buy fuel and power as well as the foreign exchange component of its missionary electrification program.
Napocor-SPUG is invoking its right to increase its power rates in 31 provinces for 24 months under the generation rate adjustment mechanism, also known as the rate recovery scheme approved by the commission.
Prayer to increase power rates
"The applicant prays that the proposed deferred accounting adjustment for the test period January 2009 to December 2009 in the amount of P2.139 billion be approved or provisionally approved," according the petition to increase power rates.
In performing its missionary electrification function, Napocor-SPUG said it incurs additional fuel operating costs as a result of fuel price movements and in the cost of power that it buys from its suppliers.
"The additional fuel and purchased power costs, which Napocor-SPUG bears, if allowed to escalate without the benefit of any recovery through rates, will contribute to its deteriorating financial condition," it said.
In another petition, Napocor-SPUG said it wants to recover the costs it incurred on the changes in the peso-dollar foreign exchange rate, totaling P153.97 million, noting it either incurs additional operating costs or gains savings in servicing its foreign debt and its expenses in foreign currency.
The state power utility cited insurance coverage of imported power plant and transmission parts in arguing its foreign currency expenses.
"Applicant proposes to recover (refund) the deferred accounting adjustments corresponding to additional costs or savings from foreign exchange fluctuations in the settlement of debt service and operating expenses as well as corresponding carrying charges for the billing period January to December 2009 for Luzon, Visayas andMindanao grids," it said.
Foreign exchange expenses
Thus, Napocor-Spug wants an increase of P0.1982 per kilowatt hour in various provinces nationwide to recover P153.97 million over 12 months.
SPUG, the missionary electrification arm of Napocor, is mandated by the Electric Power Industry Reform Act to provide remote islands and far-flung, inland barangays with electricity, in particular those that are not connected to any of the main power grids.
Napocor’s generating assets are already more than 90 percent privatized giving the company more time to focus on SPUG’s operations.
Napocor-SPUG currently operates 112 power plants nationwide with a combined rated capacity of nearly 200 megawatts. — VS, GMANews.TV
In separate applications filed with the commission on Jan. 14, which the ERC released Monday, Napocor-SPUG said it wants to recover over P2.129 billion the State power firm used to buy fuel and power as well as the foreign exchange component of its missionary electrification program.
Napocor-SPUG is invoking its right to increase its power rates in 31 provinces for 24 months under the generation rate adjustment mechanism, also known as the rate recovery scheme approved by the commission.
Prayer to increase power rates
"The applicant prays that the proposed deferred accounting adjustment for the test period January 2009 to December 2009 in the amount of P2.139 billion be approved or provisionally approved," according the petition to increase power rates.
In performing its missionary electrification function, Napocor-SPUG said it incurs additional fuel operating costs as a result of fuel price movements and in the cost of power that it buys from its suppliers.
"The additional fuel and purchased power costs, which Napocor-SPUG bears, if allowed to escalate without the benefit of any recovery through rates, will contribute to its deteriorating financial condition," it said.
In another petition, Napocor-SPUG said it wants to recover the costs it incurred on the changes in the peso-dollar foreign exchange rate, totaling P153.97 million, noting it either incurs additional operating costs or gains savings in servicing its foreign debt and its expenses in foreign currency.
The state power utility cited insurance coverage of imported power plant and transmission parts in arguing its foreign currency expenses.
"Applicant proposes to recover (refund) the deferred accounting adjustments corresponding to additional costs or savings from foreign exchange fluctuations in the settlement of debt service and operating expenses as well as corresponding carrying charges for the billing period January to December 2009 for Luzon, Visayas and
Foreign exchange expenses
Thus, Napocor-Spug wants an increase of P0.1982 per kilowatt hour in various provinces nationwide to recover P153.97 million over 12 months.
SPUG, the missionary electrification arm of Napocor, is mandated by the Electric Power Industry Reform Act to provide remote islands and far-flung, inland barangays with electricity, in particular those that are not connected to any of the main power grids.
Napocor’s generating assets are already more than 90 percent privatized giving the company more time to focus on SPUG’s operations.
Napocor-SPUG currently operates 112 power plants nationwide with a combined rated capacity of nearly 200 megawatts. — VS, GMANews.TV
Off-grid consumers to pay higher bills starting March
ELECTRICITY USERS outside the main transmission grid will have to pay higher bills starting next month, as the Energy Regulatory Commission (ERC) has approved final rate increases for these areas served by the National Power Corp.-Small Power Utilities Group (Napocor-SPUG).
In its decision, dated Jan. 31, ERC allowed Napocor-SPUG to charge an additional P0.949 per kilowatt-hour (kWh) in Luzon, P1.195/kWh in the Visayas and P1.468/kWh in Mindanao .
The increases are under the 3rd generation rate adjustment mechanism (GRAM) application of Napocor-SPUG covering the period January-December 2005.
Republic Act 9136, or the Electric Power Industry Reform Act of 2001, provided for GRAM, which enables utilities to recover fuel costs, and the incremental currency exchange rate adjustment (ICERA), which covers costs due to exchange rate movements.
The Napocor-SPUG Web site shows electricity rates in these areas now range from P3.7064/kWh-P6.2553/kWh.
The new decision replaces the provisional authority earlier granted by the ERC for Napocor-SPUG to hike rates by P0.50/kWh for the January billing period that was charged this month.
"A thorough review of the documents submitted by the Napocor-SPUG revealed that there is indeed a need to increase its [charges] to enable it to meet its fuel requirements and ensure that there is efficient, continuous and reliable supply of power within the SPUG areas," the order stated.
ERC said Napocor-SPUG had sought an average P1.38/kWh increase to cover some P2.065 billion in under-recovery for a two-year period.
Provinces affected by the increase are Mindoro, Batangas, Marinduque, Quezon, Palawan, Catanduanes, Albay, Romblon, Batanes, Cagayan, Aurora, Apayao, Kalinga, Isabela, Camarines Sur, Masbate, Cebu, Siquijor, Antique, Iloilo, Leyte, Biliran, Samar, Basilan, Sulu, Dinagat, Sultan Kudarat, Davao, Surigao del Norte, Zamboanga and Tawi-Tawi.
Napocor-SPUG operates 157 power plants with a combined capacity of almost 200 megawatts.
SPUG areas are subsidized by consumers covered by the main transmission grid through a universal charge for "missionary" electrification.
Last Jan. 14, Napocor-SPUG also sought P1.3163/kWh and P0.1982/kWh increases under its 6th GRAM and 6th ICERA applications, respectively. The 6th GRAM application is currently being discussed by the ERC. -- ENJD
SPUG plants running out of fuel again
10:30 pm | Wednesday, June 1st, 2011
Generation facilities under the National Power Corp.’s Small Power Utilities Group (SPUG) are expected to run out of fuel again by the end of the month, as suppliers refuse to make additional deliveries because
of the state firm’s ballooning arrears.
of the state firm’s ballooning arrears.
An official privy to the matter said the P2 billion that the Department of Budget and Management released to Napocor in March for payment of fuel-related debts had been used up.
As a result, most additional fuel purchases made over the past two months remain unpaid. Credit lines with suppliers had thus been severed.
Napocor-SPUG’s suppliers include Pilipinas Shell Petroleum Corp., Petron Corp., Filpride Resources Inc., and Unioil Petroleum Philippines Inc.
If Napocor-SPUG would be unable to raise fresh funds to cover its fuel needs, areas under the SPUG would again experience massive blackouts like what happened a few months ago. In some areas, the blackouts lasted for weeks.
At this point, the source said Napocor management would again be seeking some help from the government, by way of a supplemental budget, on top of what was approved under the General Appropriations Act.
The source related that Napocor sought an operating budget of around P18.3 billion, but what Congress approved was only P7.5 billion. Of this amount, only around P3 billion was allocated to fuel and lubricants for SPUG plants—which is not enough to cover all the fuel requirements of the SPUG facilities for an entire year.
Another source of funds would be a higher universal charge for missionary electrification (UCME), which would be charged to power consumers on a per-kilowatt-hour (kWh) basis.
Under Rule 13 Section 4a of the implementing rules and regulations of the Electric Power Industry Reform Act of 2001 (Epira), Napocor-SPUG operations would be funded by revenue from power sales in missionary areas and from a share in the UCME.
The Energy Regulatory Commission, however, approved a lower UCME for Napocor in September last year. From P0.0978 per kWh, the UCME was reduced to only P0.0454 per kWh. This lower UCME was equivalent to a P2.8-billion subsidy to Napocor-SPUG areas.
