Napocor wants to put up generation plants

State-run National Power Corp. is offering its expertise to put up generating facilities in case of a power crisis.

Napocor said Section 71 of the Electric Power Industry Reform Act of 2001 should be amended to grant the Energy secretary the power to determine an imminent power shortage.

Section 71 of the Epira law states that upon determination of the president of an imminent shortage of supply of electricity, Congress may authorize, through a joint resolution,  the establishment of additional generating capacity.

Napocor said  upon the recommendation of the Energy secretary, the president may authorize the establishment of security capacity “under such terms and conditions as may be recommended by the Secretary of Energy.”

“DoE  may tap the capability of NPC in building such security capacity and operating it. Accordingly, the option for the President to exercise section 71 and thereafter for Congress may be dispensed with,” it said.

Napocor said as the operation of such security capacity was expected to be costly, funds necessary to build a plant including its operation and maintenance should be provided by the government and should not be passed on to consumers. 

Napocor said the administration of the universal charge for missionary electrification and environmental levy should also be transferred to the company from the Power Sector Assets and Liabilities Management Corp. by 2026.

Napocor is mandated under the Epira law to provide electrification to missionary or far-flung areas. Prior to the passage of the law, Napocor monopolized the country’s power and transmission sectors.

It said PSALM, which manages the assets and liabilities of Napocor, should only be the administrator of the universal charge for stranded contract cost and stranded debts in line with its mandate under the law.

Topics: National Power Corp. , Electric Power Industry Reform Act of 2001 , Power Sector Assets and Liabilities Management Corp.
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