Wednesday, 28 December 2011 11:41
Speaker Feliciano Belmonte Jr. said the increase in the budget of the National Power Corporation (Napocor) is necessary to ensure the country will have continuous power supply.
"The increase in power generation entails higher production cost, covering expenses for fuel, purchase power, rental of generating sets and new power providers (NPP) subsidy and related taxes," he said.
Belmonte said Napocor also needs to address its debt service in the amount of P3.1 billion obtained in FY 2009 and currently programmed for payment next year, and a six months provision for interest expense that were not part of the basis for the 2012 General Appropriations Act (GAA) approved level.
"The additional requirements for Capital Expenditures (CAPEX) in excess of the GAA approved level are all intended for commitments in various stages of procurement and disbursements and primarily classified as priority necessary to address the corresponding input VAT (value added tax) for such," he said.
The House of Representatives earlier passed on third reading House Joint Resolution 27, principally authored by Belmonte, which increases the corporate budget of Napocor.
Under Joint Resolution 27, the firm's corporate operating budget for 2012 will be increased from P7.5 billion to P14.9 billion.
"The additional budget shall be necessary primarily to cover the requirements for fuel, purchase power, rental of generating sets, new power providers’ (NPP) subsidy, related input VAT, debt service and capital expenditures for the entire year," said Belmonte.
He said the additional requirements are a result of the re-assessment of corporate requirements, specific programs/activities, implementation schedule, status of procurement, consideration of recent developments covering updated fuel prices, sales and generation forecast to ensure a normal power supply to the islands being served to cover the entire year.
Batanes Rep. Henedina Abad, co-author of the joint resolution, said the P7.5 billion GAA-approved corporate operating budget of Napocor for next year is just enough to cover six months of the firm's requirements for operations.
The revised requirements for the year, inclusive of the P7.3 billion supplemental requirements being proposed would now amount to P14.9 billion.
Abad said the financing sources by the corporation identified to support the updated requirements of P14.9 billion shall be from the existing approved tariff from the Small Power Utilities Group (SPUG) areas, receipts from the National Government as part of the reimbursement for the Bataan Nuclear Power Plant (BNPP) advances by the corporation, and the expected additional Universal Charge for Missionary Electrification-True Up as a result of the provisional authority recently granted by the Energy Regulatory Commission (ERC).
Other financing sources also include expected proceeds from the Department of Finance (DoF) currently being finalized to address the maturing short term facility for repayment and expected partial reimbursement from Power Sector Asset and Liabilities Management Corporation (PSALM)pertaining to Napocor's advances to the Bureau of Internal Revenue (BIR) for VAT on the sale of some main grid power plants as well as from other receivables, she said.
Co-authors of the joint resolution are Reps. Antonio Lagdameo Jr. (Davao del Norte), Ponciano Payuyo (APEC party-list), Victorino Dennis Socrates (Palawan), Ma. Amelita Calimbas-Villarosa (Occidental Mindoro), Antonio Alvarez (Palawan), Scott Davies Lanete (Masbate), Rene Relampagos (Bohol), Rodolfo Valencia (Oriental Mindoro), Joseph Emilio Abaya (Cavite), Wilfrido Enverga (Quezon), Eleandro Jesus Madrona (Romblon), Mel Senen Sarmiento (Western Samar), and Lord Allan Jay Velasco (Marinduque). (
By ilybeth G. Ison /PIA9-ZBST
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