Napocor saves P14B due to cost-cutting measures
By Donnabelle L. Gatdula
The Philippine Star 05/05/2006
The National Power Corp. (Napocor) realized savings of about P14 billion in 2005 with its continued implementation of stringent cost-cutting measures, including economic load dispatching and the prioritization of capital expenditures.
Based on the power firm’s data, the biggest chunk of the savings — amounting to P9.88 billion — resulted from the economic load dispatching of its power plants.
Under the company’s cost-cutting measure, plants that are more efficient and have lower fuel costs are dispatched first in order to minimize the use of the more expensive plants.
The 2005 savings from economic load dispatching were almost three-fold or 190 percent higher than the year-ago figure of P3.4 billion.
Napocor also saved another P3.83 billion through the prioritization of capital expenditures.
The company has been focusing on key capex requirements that have been certified urgent and were considered crucial in ensuring the operational capability and efficiency of Napocor plants.
In 2004, Napocor was able to realize savings of P3.79 billion from the focused-capex scheme.
According to Napocor, the 2005 savings from implementing these measures did not reflect yet its reduced contractual obligations to some of its independent power producers, and from the increased operational efficiency of its power plants.
These two measures yielded savings of P8.06 billion and P583 million, respectively, in 2004.
Napocor said it also recorded savings of P199.22 million from the reduction of operating expenses, including strict limitations on foreign travels and training, and other controllable expenditures.
About P61 million savings were also realized from the adoption of the electronic bidding system, which enabled the power generation company to secure competitive tenders for its fuel and materials/supplies requirements.
Some P44.29 million worth of savings were also generated from the optimum use of local coal through blending with imported coal.
The Philippine Star 05/05/2006
The National Power Corp. (Napocor) realized savings of about P14 billion in 2005 with its continued implementation of stringent cost-cutting measures, including economic load dispatching and the prioritization of capital expenditures.
Based on the power firm’s data, the biggest chunk of the savings — amounting to P9.88 billion — resulted from the economic load dispatching of its power plants.
Under the company’s cost-cutting measure, plants that are more efficient and have lower fuel costs are dispatched first in order to minimize the use of the more expensive plants.
The 2005 savings from economic load dispatching were almost three-fold or 190 percent higher than the year-ago figure of P3.4 billion.
Napocor also saved another P3.83 billion through the prioritization of capital expenditures.
The company has been focusing on key capex requirements that have been certified urgent and were considered crucial in ensuring the operational capability and efficiency of Napocor plants.
In 2004, Napocor was able to realize savings of P3.79 billion from the focused-capex scheme.
According to Napocor, the 2005 savings from implementing these measures did not reflect yet its reduced contractual obligations to some of its independent power producers, and from the increased operational efficiency of its power plants.
These two measures yielded savings of P8.06 billion and P583 million, respectively, in 2004.
Napocor said it also recorded savings of P199.22 million from the reduction of operating expenses, including strict limitations on foreign travels and training, and other controllable expenditures.
About P61 million savings were also realized from the adoption of the electronic bidding system, which enabled the power generation company to secure competitive tenders for its fuel and materials/supplies requirements.
Some P44.29 million worth of savings were also generated from the optimum use of local coal through blending with imported coal.
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