"There is no subsidy for Napocor in the present budget," said Rep. Rolando Andaya Jr. (Lakas, Camarines Sur).
Andaya was commenting on the suggestion of some administration officials that the budget be used to absorb some of Napocor’s losses resulting from President Arroyo’s decision to suspend the controversial purchased power adjustment (PPA).
Napocor is expecting losses of P15 billion in six months. It intends to borrow $100 million to augment its funds.
Andaya said the suggestion to use the budget would mean a bigger budget deficit this year "which would be bad for the economy and the nation."
He said the House would also not agree to the imposition of new taxes to subsidize Napocor.
"Salvation cannot be found in the budget or in new tax measures," he stressed.
He suggested that Napocor resort to cost-cutting and that the government renegotiate onerous contracts with independent power producers.
"We cannot continue paying for electricity that we don’t use or that is not even generated," he said.
During its hearing on the PPA last Tuesday, the House energy committee was told that some IPP plants are not operating but that Napocor continues to pay their owners millions as stipulated in their contracts.
Napocor officer-in-charge Roland Quilala informed the committee that two Mindanao-based power plants are not operating but Napocor pays their owners P42 million a month. – Jess Diaz