Napocor income hits P1.5 B in 2014

State-owned power company National Power Corp. (Napocor) posted a net income of P1.5 billion last year, the highest financial turnaround since 2012.

In 2013, Napocor posted a net income of P505 million and P398 million in 2012.

With its financial turnaround, Napocor is setting aside more for its missionary areas on the back of strong growth of business and economic activities in these farflung off-grid areas around the country.

“The growth of business and economic activities in the missionary areas has prompted Napocor to augment its P17.302 billion budget for 2015 with another P1.062 billion or an additional six percent that will come from its internally cash generated funds,” the company said.

This would help fund additional budget requirement for new power providers (NPPs) and qualified third parties ( QTPs). NPPs and QTPs are private power suppliers that have taken over the generation function of Napocor in missionary areas.

Napocor expects a hike in the demand for electricity in missionary areas. As such, Napocor expects an increase in subsidy payments to private power suppliers, thus the need for augmentation in Napocor’s budget for NPPs and QTPs.

For 2015, Napocor expects energy sales of NPPs and QTPs at 604 gigawatt-hours, an 18 percent increase from its original forecast of 511 GWh.

“The increase in demand is mainly because of the upsurge of economic activities and the improved living standards in the islands after boosting electric supply in new growth areas in Palawan, Mindoro, Catanduanes, Masbate, and Siquijor,” said Napocor president and CEO Ma. Gladys Cruz-Sta. Rita.

Specifically, the proposed augmentation of P1.062 billion will address the full-year requirement for the subsidy expenses of NPPs and QTPs operating in missionary areas.

“This includes P944 million augmentation budget intended for the October to December 2015 requirements for existing NPPs and QTPs and the realignment of P118 million budget to cover the requirements of additional NPPs, which recently received approval to operate from the Energy Regulatory Commission (ERC),” Napocor said.

These new power providers in missionary areas are the Palawan Power Gen Inc. (PPGI), Delta P Inc.; DMCI-Masbate; Ormin Power Inc.; Power One; Mindoro Grid; Catanduanes Power Generation Inc.; Power Source Philippines Inc.; DMCI- Palawan; Bantayan Island Power Corp.; Siquijor Island Power Corp.; and Calamian Island Power Corp.

Meanwhile, the new NPPs that started operation earlier in 2015 are Sunwest Water and Electric Co. in Catanduanes and DMCI-Calapan in Mindoro.