PNOY DIRECTS P1.62-B RELEASE TO NPC-SPUG TO AVERT POWER SHORTAGE IN ISLANDS; ABAD: GOV’T PREPARING NEXT STEPS FOR STABLE, AFFORDABLE POWER IN REMOTE AREAS
Upon instruction of President Benigno S. Aquino III, the Department of Budget and Management (DBM) has released P1.62 billion to the National Power Corporation (NPC) to prevent imminent power shortages in far-flung areas across the country.
“The P1.62 billion was immediately released by the government to urgently address the NPC’s capability to provide stable power supply in off-grid areas, some of which have already experienced sporadic brownouts due to fuel supply constraints,” Budget and Management Secretary Florencio B. Abad said.
“Furthermore, the government is now preparing for its next steps in ensuring stable and affordable power supply to remote areas,” he said. He notes that a fund release for the sitio electrification project is now being processed.
Of the P1.62 billion, P1.32 billion will be used to address the fuel requirements of NPC’s Small Power Utilities Group (SPUG); P162.5 million, which is half of the NPC’s capital expenditure for 2011, for the purchase of spares for SPUG plants; and P140 million for the lease of generator sets for SPUG areas. The release has been charged against the Malampaya Fund.
A total of P3.6 billion has been released for NPC-SPUG this year, to be offset against the claims of NPC for reimbursement of its advances in the preservation and maintenance of the Bataan Nuclear Power Plant (BNPP).
In February, P2 billion was released for the fuel requirements of NPC-SPUG. NPC has claimed for the reimbursement of its advances incurred in the preservation of the BNPP starting 1986 amounting to P4.37 billion as of December 2010.
Chateau du Mer at twilight time. Lights still lit.SPUG is the missionary electrification arm of NPC that operates 317 generating units with total rated capacity of 147.675 MW in 86 areas. This nationwide operation serves 78 island grids and 8 isolated grids catering 3,330 barangays in 192 municipalities across the country.
(Media Release from dbm.gov.ph website 9/02/11)
