House urged to break impasse on DBM-NPC budget

MANILA, Philippines — A senior opposition lawmaker is calling on his colleagues in the House of Representatives to step into the budget standoff between the Department of Budget and Management (DBM) and the National Power Corp. (NPC) over the latter’s 2023 budget allocation.

Northern Samar Rep. Paul Daza warned that the continued stalemate between the two may result in the disadvantage of power consumers or end users, most particularly big businesses, should there be power interruptions again.

“Let us be reminded of who and what gets sidelined when power supply comes up short: students, employees, economic opportunities, and the modern quality of living of our fellow Filipinos,” the senior deputy minority leader pointed out.

NPC originally proposed a P45-billion budget for 2023 but was “allegedly slashed down to P32 billion,” prompting the state-owned power firm to warn that this would further aggravate NPC’s unpaid debt situation with fuel suppliers and lead to power plant closures.

The DBM, however, stood pat on its huge budget cut, insisting that NPC’s corporate operating budget was not reduced and that the subsidy portion in their 2023 budget was actually raised from P3.8 billion to P5.07 billion.

Moreover, the budget department approved the release of a P2.9-billion special allotment release order (SARO) to the NPC, on top of an existing P1.02 billion issued for small power utility group (SPUG) generator companies (gencos).

Daza warned that SPUG gencos are currently in a race against time, waiting for the NPC to settle its accounts with suppliers before power outages ensue in the so-called “missionary electrification areas.”

“These missionary areas can be found in 34 provinces. If the power plants servicing these areas are not provided with a steady, reliable supply of diesel fuel, then approximately 900,000 Filipino households may be plunged into total darkness by July,” he predicted.

SPUG gencos, under the Electric Power Industry Reform Act of 2001 (RA 9136), are third-party power plant operators put into service by the NPC for missionary electrification areas, which are not connected to the country’s major power grids.

Daza pointed out that fuel suppliers have been reluctant to continue working with the NPC after it racked up unpaid obligations, which add up “to the tune of P1 billion,” he disclosed further.

There has to be “improved coordination between the NPC and DBM” most especially since “developments on this issue, regrettably, have slowed down and devolved into a he-said-she-said situation between the Napocor and DBM.”

Daza called for “a detailed breakdown from the NPC of its SPUG genco funding requirements and transactions” and urged his fellow lawmakers to “ascertain if the budget allocated to the sound operation of SPUG gencos are appropriate and utilized.”

“It is with these matters that we must truly exercise unity and ensure that the lights stay on in every Filipino (household),” he said.