STATE-OWNED National Power Corporation (Napocor) posted a net income of P1.6 billion in 2016 as stated in its financial report submitted to the Commission on Audit (COA), down from a comparative P4.9 billion in 2015.
Napocor has been posting positive earnings since 2012, realizing a complete financial turnaround in 2015. That year, it also posted P2.5 billion in retained earnings, a reversal of its P2.78 billion net loss in 2010.
“The restructured tariff recovery approach, more proactive recovery of the Universal Charge for Missionary Electrification (UCME) and sustained high collection efficiency also helped in maintaining our good financial standing,” Napocor President Ma. Gladys Cruz-Sta. Rita said on Friday.
In the latter part of 2014, Napocor appealed before the Energy Regulatory Commission (ERC) for a restructured tariff recovery approach to narrow the gap between cost and revenue.
The ERC had provisionally approved the P0.1163 centavos per kilowatt hour basic UCME from P0.0454, though the total UCME remains at the same level of P0.1561 per kilowatt hour.
The provisionally approved tariff gave the corporation greater fiscal muscle, allowing it to fund most of its expenses using current revenues.
Napocor said its collection efficiency for Luzon, Visayas and Mindanao excluding Basilan, Sulu and Tawi-Tawi improved to 98.38 percent when it used to be only 85 percent in 2012.
“We owe our sound collection efficiency to the dialogues we have been organizing with our customers since the past three years. These dialogues paved the way for a better and faster communication line and better services we give to our customers,” Sta. Rita said.
In its missionary electrification operations, Napocor purchased 56 new generating sets with an aggregate capacity of 13.55 megawatts. These gen sets were distributed to 47 Small Power Utilities Group (SPUG) power plants, which allowed enhanced power supply in the islands.
Napocor also extended the service hours of 26 SPUG plants, seven of which were given full 24 hours of operation. These are Itbayat and Sabtang in Batanes, Polilio in Quezon, Araceli and Rizal in Palawan, Pilar Island in Cebu and San Antonio in Northern Samar.
For its transmission line and substation projects, Napocor said the completed projects include the rehabilitation of the 87km 69 kilovolts (kV) Mamburao-Sablayan-Ligaya (Occidental Mindoro); 61.23 Km 69 kV Bansud-Mansalay (Oriental Mindoro) and the extension of the 69 kV Mobo-Aroroy (Masbate) transmission lines. It also completed the 10 MVA Virac (Marinawa substation) in Catanduanes.
Napocor fully energized in 2016 the 111-km 69 kV Puerto Princesa to Roxas transmission line in Palawan. The project, which was stalled for seven years due to right-of-way concerns, was one of the priority projects of Sta. Rita when she assumed office in 2013.
Napocor has also rehabilitated 1,881 hectares of open lands within its 11 watershed areas and conducted mandatory safety inspections to its dams to ensure the safety of communities downstream. These watersheds and dams support power generation.