Napocor sales up 2% in H1

Despite a drop in demand, state-owned National Power Corp. (Napocor) recorded a slight increase in its energy sales in the first half of the year.

Napocor data showed that sales for the first six months of the year reached 18,888.34 gigawatt-hours (gwh), up 2.06 percent from 18,506.55 gwh in the same period last year. The power generation firm attributed the sales improvement to the continued rise in sales in all of its grids.

It noted that energy sales in the Visayas region, registered the highest growth rate at 6.35 percent from 2,544.69 gwh in the first half of 2007 to 2,706.24 gwh this year. Napocor said this was due to the robust demand from electric cooperatives and economic zones in the region.

Among the customers that contributed to brisk sales in the Visayas were new customers Panay Electric Co. and the PEZA-Mactan Economic Zone I, which began drawing power from Napocor only in June 2007 and April 2008, respectively; the Visayas Electric Co., Inc.; the Philippine Associated Smelting and Refinery Corp.; and the Philippine Phosphate and Fertilizer Corp.

Napocor said sales in the Visayas exceeded the original forecast by 3.45 percent mainly due to the higher-than-expected electricity demand and the improving investment climate in the region. In Luzon, sales rose by a modest 1.02 percent, or from 12,354 gwh to 12,481.06 gwh year-on-year.

 The higher sales in Luzon was brought about by a hefty 45.24 percent increase in Napocor’s regular energy sales to the Manila Electric Co. (Meralco), which went up from 4,077 gwh to 5,921.28 gwh. “In contrast, Meralco’s purchases from the wholesale electricity spot market (WESM) drastically went down by 53.87 percent, or from 2,874.58 gwh in 2007 to 1,326.06 gwh this year,” Napocor said.

 Napocor noted that Meralco was able to get more of its power requirement from the state-run power firm during the period.

“When WESM prices became higher than Napocor’s time-of-use rates, Meralco started reducing its energy purchases from the spot market and bought more from its bilateral contract with Napocor,” it said. Actual energy sales in Luzon were 12.48 percent higher than the forecast level of 11,096 gwh.

Despite the unstable peace and order situation in the North and Southwestern Mindanao areas, overall sales in the Mindanao grid managed to grow 2.6 percent year-on-year, or from 3,607.41 gwh in the first semester of 2007 to 3,701.06 gwh in the same period this year.

 Among those that contributed to the higher sales were Platinum Group Metals; Holcim Phils. Inc. (Davao); the Davao Light & Power Co. Inc.; Apex Mining; and Elegant Chemical Aluminum.

In the missionary electrification areas being serviced by Napocor’s Small Power Utilities Group, sales improved 10.36 percent year-on year, or from 250.18 gwh to 276.11 gwh.