National Power Corp. on Thursday warned that it would reduce electricity service in remote areas not served by the power grid because of the fuel supply shortage and delayed subsidy payment.
NPC president Fernando Martin Roxas informed electric cooperatives in a letter of the power curtailment in areas under the Small Power Utilities Group starting Feb. 1 this year.
“Due to limited funds, we plan to implement reduced operations from SPUG power plants starting Feb. 1, 2023 to stretch out fuel supply,” Roxas said.
He asked the ECs to work together with NPC to mitigate the impact to consumers.
NPC, the National Electrification Administration, the Department of Energy and the Association of Isolated Electric Cooperatives held a consultative meeting Tuesday to resolve the power supply issues concerning the NPC-SPUG.
NEA administrator Antonio Mariano Almeda instructed the ECs to inform their member-consumer-owners about the looming power crisis.
Almeda asked NEA deputy administrator for technical services lawyer Omar Mayo to coordinate with NPC on the advance payment of the ECs as part of the short-term solution to the fuel supply problem.
He also asked the ECs to meet with their respective local government officials to help in the advance payment and to have an embedded renewable power source as part of the long-term solution.
Almeda assured the ECs that the energy sector would do their part in resolving the power supply issue.
AIEC president and Romblon Electric Cooperative Inc. general manager Rene Fajilagutan raised concern during the meeting on the curtailment of the operation of NPC-SPUG plants which he said would lead to power outages.
NPC said during the meeting it formed a crisis management and communication plan, which was approved by the board, to address the supply curtailment and the delay in UC-ME subsidy payment.
Roxas said the company requested a P5-billion loan solely for fuel purchases, but they expected it to be released in May. He asked the ECs if they could help advance fuel payment.
The Energy Regulatory Commission earlier assured that it would expedite the review of NPC’s relevant petitions following due process and proceedings and look for alternative solutions to solve the crisis in missionary areas.
The regulator said it would also ensure that reasonable prices and quality service would be provided.
More than 20 ECs in Luzon, Visayas, and Mindanao attended the meeting with DOE, NPC and NEA. Another forum will be held on Jan. 26 to discuss the advance payment process for fuel purchases.