An official from the Energy Regulatory Commission clarified that the subsidies from the Malampaya gas field are not included in the list of funding sources earmarked for Palawan during a public hearing on a proposed increase in power generation charges on Thursday.
This is reportedly based on records by the National Power Corporation (NAPOCOR).
The clarification was made following NAPOCOR’s presentation of its proposed power rate increase.
Palawan Electric Cooperative (PALECO) General Manager Engr. Rez Contrivida asked the NAPOCOR panel if the province’s subsidy would be lessened, as the national government was also using the fuel from the Malampaya gas field.
Catherine Maceda, commissioner for the Energy Regulatory Commission (ERC), noted that the specific sources of funding for power rates was not decided by the ERC nor NAPOCOR.
“May appropriations [ang NAPOCOR], nakalagay doon kung ilan ang binibigay ng Committee sa kanila, so may general appropriations doon. Pero for the specific source of funds coming from that provision of the GAA, hindi ganoon kadetalyado pag nag-aapprove na,” Maceda said.
This statement was echoed by the Manager for the Revenue Management Department of NAPOCOR, Ma. Annabel Versoza, who clarified that the proposed rate was based on other factors aside from fuel prices.
She noted that although NAPOCOR’s presentation included the economic situation of MCOs in Palawan, the report was limited to the rationale of justifying the P 1.208 per kW/H increase for the subsidized approved generation rate (SAGR).
“Wala naman po nakalista sa specific [list] ang Malampaya funds. (…) [Sa ngayon], the Malampaya fund is not located in our sources,” she added.
Maceda reiterated that this expository hearing was merely the first among a series of reports that NAPOCOR will hold, with regards to their proposed SAGR rate. She noted that the ERC’s final approval was part of following the policies set by the Department of Energy.
When asked about the use of Malampaya fuel in NAPOCOR’s diesel power plants, Maceda reiterated their stance. “Wala kaming natatanggap na subsidiya sa Malampaya. In fact, kulang na yung gas na nanggagaling sa Malampaya. Alternative fuel na ang ginagamit dito, mas mahal.”
Maceda said that these concerns will be forwarded to the policy-making body of the Department of Energy in a future hearing.
