NPC posts P14-B savings in 2005
Manila Bulletin, May 5, 2006
State-owned National Power Corporation (NPC) reported that it saved as much as P14.022 billion last year; primarily due to the economic load dispatch of its power plants.
The company noted that P9.884 billion was trimmed down from its operating costs due to economic load dispatching; and while the other bulk of savings amounting to P3.834 billion came from deferment of capital expenditures.
"NPC saves an estimated P14 billion in 2005 following the continued implementation of stringent cost-cutting measures, including economic load dispatching and the prioritization of capital expenditures," the company has noted.
With the optimized use of local coal thru blending with imported supply, this likewise resulted in P44.286 million cut in the power firm’s costs.
Savings have further been achieved from the adoption of electronic bidding for supply and equipment, to the tune of P60.995 million; while cost-cutting in operating expenses logged P199.223 million in additional savings.
The power firm last year was reported to have wiped out its previously registered huge losses; and managed to put in modest pre-audited income of P16 million.
Given, however, that it still needs to settle some enormous indebtedness; including bullet repayments amounting to 0 million, power firm officials stressed that they cannot totally set themselves free yet from acquiring new set of loans.
Its successor-company, the Power Sector Assets and Liabilities Management Corporation (PSALM) sounded off that it would still need to secure new loans for NPC this year; but the level of borrowings is expected to soften.
NPC president Cyril C. del Callar noted that the diversification strategy in the country’s power mix worked well in their bid to significantly bring down operating costs - especially in reducing oil consumption to run generation plants.
"The new generation mix also made available financial resources that we will be able to use to implement projects," he said.
At the same time, he noted that the power firm’s move to utilize more renewable power sources, as well as indigenous fuel sources, "has lessened our dependence on imported fuel oil and at the same time, help assure the country of its security of supply."
He added that "having a stable power supply in the long-term results to sustained economic growth. This also increases our country’s competitive advantage in the international market, giving us a solid foundation to pursue our own national development goals." (MMV)
State-owned National Power Corporation (NPC) reported that it saved as much as P14.022 billion last year; primarily due to the economic load dispatch of its power plants.
The company noted that P9.884 billion was trimmed down from its operating costs due to economic load dispatching; and while the other bulk of savings amounting to P3.834 billion came from deferment of capital expenditures.
"NPC saves an estimated P14 billion in 2005 following the continued implementation of stringent cost-cutting measures, including economic load dispatching and the prioritization of capital expenditures," the company has noted.
With the optimized use of local coal thru blending with imported supply, this likewise resulted in P44.286 million cut in the power firm’s costs.
Savings have further been achieved from the adoption of electronic bidding for supply and equipment, to the tune of P60.995 million; while cost-cutting in operating expenses logged P199.223 million in additional savings.
The power firm last year was reported to have wiped out its previously registered huge losses; and managed to put in modest pre-audited income of P16 million.
Given, however, that it still needs to settle some enormous indebtedness; including bullet repayments amounting to 0 million, power firm officials stressed that they cannot totally set themselves free yet from acquiring new set of loans.
Its successor-company, the Power Sector Assets and Liabilities Management Corporation (PSALM) sounded off that it would still need to secure new loans for NPC this year; but the level of borrowings is expected to soften.
NPC president Cyril C. del Callar noted that the diversification strategy in the country’s power mix worked well in their bid to significantly bring down operating costs - especially in reducing oil consumption to run generation plants.
"The new generation mix also made available financial resources that we will be able to use to implement projects," he said.
At the same time, he noted that the power firm’s move to utilize more renewable power sources, as well as indigenous fuel sources, "has lessened our dependence on imported fuel oil and at the same time, help assure the country of its security of supply."
He added that "having a stable power supply in the long-term results to sustained economic growth. This also increases our country’s competitive advantage in the international market, giving us a solid foundation to pursue our own national development goals." (MMV)
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