Napocor has no budget for Clean Air Act

The National Power Corp. (Napocor) will have a big problem complying with the Clean Air Act (CAA) as its budget for 2001 does not have a provision for this.

Documents obtained by reporters yesterday show that Napocor’s various generation companies (Gencos) need a total of P4.45 billion to comply with the Act.

"However, these estimates are not included in the proposed detailed budget (for this year)," the documents said.

The implementing rules and regulations (IRR) for the Clean Air Act were approved recently, but the Department of Energy is asking Congress to defer its implementation.

Sources, however, revealed that the Department of Environment and Natural Resources (DENR) is not amenable to the DOE proposal.

A study is being conducted by the Asian Development Bank (ADB) on the impact of the CAA. The ADB study will determine if the delay be acceptable or not.

Initial DOE estimates show that prices of petroleum products will soar in the next two years as the country braces for the impact of the implementation of the CAA.

Based on its simulation, the DOE said the price of diesel may go up by at least 61 centavos per liter while gasoline products will increase by P2 per liter.

Power rates, it said are also expected to increase by 50 to 90 centavos per kilowatt hour.

DOE said these are based on anticipated investment costs to retrofit power plans and refineries and costs to meet the monitoring and reportorial requirements.