Power providers assure commitment to continuous supply to the distribution of PALECO in Palawan. (From left to right- DMCI Plant Supervisor Engr. Cyril Belmonte, PALECO Board Chair Efren Abejo, PALECO General Manager Engr. Rez Contrivida, PPGI Plant Manager Engr. Saldivier Brillo and Delta P Plant Manager Engr. Cris Navarro)

Power providers have given assurance that their financial capacity can still sustain their operations in commitment to Palawan Electric Cooperative (PALECO), despite the remaining unpaid subsidies from the National Power Corporation (NPC).

Palawan Power Generation Inc. (PPGI) stated that PALECO’s early payment helps them procure fuel requirements on time. Currently, they are waiting for P116 million collectable from NPC, with one month overdue and two months non-overdue.

Plant Manager Engr. Saldivier Brillo explained that power providers should be paid within two months upon submission of billing.

“To sustain the operations, nasu-sustain naman namin dahil nakakabayad naman mas early si PALECO so yon ang ibinabayd namin. Nakakasingil naman kami kay NPC, partial, hindi lang nila na-a-update sa original na two months talaga,” he said.

Both Delta P and DMCI Power Corporation (DPC) have unpaid subsidies of four months receivable from NPC. These two companies provide the largest power supply to PALECO’s distribution system, with 20 MW from Delta P and 35 MW from DPC. PPGI, on the other hand, shares 11 MW of supply with the Palawan Main Grid.

DPC is expected to increase its supply to 50 MW once its 15 MW capacity coal-fired power plant in Narra town starts commercial operation in July.

However, the current amount of unpaid subsidies was not provided as their respective financial departments did not disclose it during their appearance at the 2nd Quarter Press Conference of PALECO.

“Currently, we have four months default on NPC, but we still have four months receivable. Two weeks ago, we were called by Professor Nani, the current president of NPC. They are still looking for adjustments on their side,” Delta P Plant Manager Engr. Cris Navarro.

Engr. Cyril Belmonte, DPC plant supervisor, mentioned that the company can still support the fuel needed for its bunker and high-speed generator sets.

Previously, DPC faced difficulties maintaining its credit line with its fuel suppliers to run its power plants and sought help from 2nd District Palawan Rep. Jose Alvarez to urge NAPOCOR to settle its outstanding obligations to the company.

It should be recalled that the outbreak of the war in Ukraine and the global rise in fuel costs have strained NAPOCOR’s financial capability to pay power producers in Small Power Utilities Group (SPUG) areas, such as Palawan, their UCME subsidies.

Previous articleKalayaan’s Barber crowned as Mutya ng Palawan 2023
Next articlePuerto Princesa hoping to resume air links from HK, South Korea
is one of the senior reporters of Palawan News. She covers agriculture, business, and different feature stories. Her interests are collecting empty bottles, aesthetic earrings, and anything that is color yellow.