ERC approves release of P100M for Napocor watersheds

MANILA, Philippines - The Energy Regulatory Commission (ERC) has approved the release of P100 million for the watershed management program of the National Power Corp. (Napocor).

Napocor said the fresh funding would ensure the good condition of watersheds for sustained power generation.

“The petition for the availment of the environmental share from the universal charge (EC) for the rehabilitation and management of watershed areas filed by Napocor is hereby approved with modifications,” ERC said.

Hence, Power Sector Assets and Liabilities Management Corp. (PSALM) was ordered to release P100.554 million for the rehabilitation program. This is lower than the P112.171 million Napocor sought from the ERC.

“The ERC disallowed the total amount of P11.61 million for Napocor’s failure to submit substantial evidence and supporting documents,” the power sector regulator said.

As of September 2011, PSALM reported that total available UC-Environmental Charge (UC-EC) funds are P703.513 million.

Under the Electric Power Industry Reform Act of 2001, Napocor is authorized to file a petition before the ERC to avail of the environmental share of 0.25 centavo per kilowatt-hour in the UC for watershed rehabilitation and management efforts.

Napocor said the petition seeks to secure funds from the UC collected in 2008.

“The proposed projects will increase and protect the receding forest cover, stabilize slopes and minimize soil erosion, protect biodiversity, increase protection over old growth areas and encourage participation of the community in watershed management,” Napocor said.

The watershed program aims to maintain the productive condition of Napocor-managed watersheds for sustained power generation. It also aims to prevent the sedimentation and siltation in reservoirs.

The protection and management program covers 11 watershed reservations. The Upper-Agno, San Roque, Angat, Caliraya-Lumot, Makiling-Banahaw, Buhi-Barit and Tiwi watershed reservations are under the sole jurisdiction of Napocor.

Magat, Pantabangan, Lake Lanao-Agus and Pulangui-Agusan-Talomo are under co-management with other government agencies.

The ERC, which allowed the release of P58 million for Napocor’s watershed projects, required Napocor to submit a progress report on the use of the funds every six months.