Napocor saves P13.3B from reorg

State-owned National Power Corp. (Napocor) has reported savings of P13.34 billion from its on-going reorganization which is part of the restructuring of the power industry pursuant to the Electric Power Industry Reform Act of 2001.

This move was aimed at achieving better operational efficiencies, much improved delivery of service and reduced operational costs, Napocor said.

Napocor implemented last year at least seven measures to bring down its costs, including the prioritization of its capital expenditures (Capex) and the reduction of its different operating expenses (opex), including leaving vacant positions.

The biggest savings of P6.76 billion was realized due to the prioritization of the different projects under Napocor’s Capex program. The reduction of Napocor’s opex, on the other hand, yielded some P1.93 billion savings in 2003.

Apart from these measures, Napocor also continues to improve the operational efficiency of its power plants to bring down its costs.

In 2003, for instance, Napocor was able to improve the heat rate of its power plants in Luzon to 9,717 British thermal unit per kilowatt-hour (Btu/kWh) from 9,829 Btu/kWh in 2002.

Similarly, Napocor was able to bring down its forced outage rate from 3.42 percent in 2002 to 2.58 percent in 2003. Savings from the more efficient operation of Napocor’s power plants stood at P1.46 billion in 2003.

Meanwhile, savings as a result of the reduction in Napocor personnel stood at P752 million.

The state-owned power firm also clarified that the forthcoming personnel movements will affect only about 200 Napocor employees, or a mere five percent of the original staff.