Power crisis in off-grid areas looms

Off-grid areas or far-flung areas not connected to the grid are facing a power crisis due to the budget constraints of the National Power Corp.

NPC is mandated by the Electric Power Industry Reform Act of 2001 to supply power to off-grid or missionary areas under its Small Power Utilities Group.

Officials of NPC, the National Electrification Administration, the Department of Energy, and the Association of Isolated Electric Cooperatives met recently to address the looming power shortage in the SPUG areas.

During the meeting, NPC advised the ECs that it would implement the reduction of electricity service in the SPUG areas starting February 1 due to fuel supply shortage and the delay in Universal Cost for Missionary Electrification (UC-ME) subsidy payment.

NPC told attendees of the meeting that they already have a Crisis Management and Communication Plan, which was approved by its board to address the supply curtailment and the delay in UC-ME subsidy payment.

NPC president Fernando Martin Roxas said the state-owned firm requested a P5 billion loan solely for fuel purchases but this will be released in May, thus the company has no funds to pay the fuel suppliers in the SPUG areas.

He asked the ECs if they could advance the payment for fuel. NPC uses diesel in most of its power facilities. Napocor also procures fuel for its other power providers.

For its part, NEA said consumers should brace themselves for a looming power crisis due to NPC’s funding problem.

https://bilyonaryo.com/2023/01/20/power-crisis-in-off-grid-areas-looms/power/