Napocor claims P411-M losses due to sales inefficiencies

The National Power Corp. (Napocor) said it lost P411 million in the first six months this year due to "sales inefficiency."

From January to June this year, Napocor’s sales efficiency dropped to 92.16 percent from 93.31 percent in the same period last year. The difference is equivalent to 233 gigawatthours (gWh) or P411 million in lost revenues.

Inefficiencies were recorded in the Visayan region particularly in the Cebu, Negros, Panay and Leyte areas. "The area needs to be monitored and checked to reduce unnecessary burden to operational efficiency," Napocor said in a report.

Meanwhile, Napocor reduced its use of fuel oil from 31 percent in the first half of 1999 to 17 percent in the same period this year as it heeded the call of government to reduce its dependence on imported fossil fuel.

Coal topped Napocor’s main energy source to fire its power plants, accounting for 38 percent of its generation mix.

Geothermal energy was the second most utilized source of power, accounting to 29 percent of Napocor’s generation mix while hydro power accounted for 16 percent.

In the first semester of last year, oil accounted for 31 percent of Napocor’s fuel mix followed by the geothermal power source of 26 percent. Third most utilized power source last year was coal, accounting for 25 percent of the mix followed by the 18-percent share of hydro power.

Coal-fired power plants generated a total of 3,446 gWh while steam-fired plants produced 5,787 gWh of electricity. Oil-fired plants, mostly fuel oil and diesel, generated 3,446 gWh while hydro powered plants accounted for 3,230 gWh of electricity.

"The drop in the generation of oil-based power plants by 2,671 gWh was due to the decreased generation of various plants attributed to maintenance and forced outages, annual over hauling, deactivated shutdowns, contract expirations and plant rehabilitation," Napocor said in a report.

Sucat IV, Manila Thermal 1 and 2, Bataan 1 and 2 plants were officially retired early this year while contracts for Fels Barge II and Van De Horst Barge were terminated on May this year.

Generation of geothermal and coal plants due to the full operation of the Masinloc and Sual coal-fired thermal plants, and the Leyte Geothermal plants in the later part of 1999.

The slight increase in power generated by hydro power was due to an increase in generation from the Agus 4 to 7 plants, Masiway and the Pantabangan plants.– Ted Torres