Senate OKs P6.3-B supplemental budget for Napocor

MANILA, Philippines - The Senate has approved the P6.393-billion supplemental budget of the National Power Corp. (Napocor) for this year to cover various expenses not included in its existing corporate operating budget.

Certified by President Aquino, Senate Joint Resolution 13 – counterpart of House Joint Resolution 21 – was approved on second and third reading last Wednesday. And since the measure was almost identical to its House counterpart, it was immediately transmitted to the President for signing.

Senate committee on finance chairman Franklin Drilon said the original proposal of the Napocor for the current year’s budget was P30.74 billion but the Department of Budget and Management reduced this further to P18.29 billion. Congress eventually cut the DBM-recommended figure to P7.575 billion.

But since Napocor had already spent a total of P7.71 billion as of September this year, an additional budget of P6.393 billion had to be legislated to cover requirements for fuel, purchases of power, rental of generating sets, new power providers subsidy, debt service and capital expenditures for the entire year.

He said Napocor also has to set aside P3.218 billion for debt service this year.

The funds would be sourced from the universal charge for missionary electrification estimated at P1.794 billion as allowed by the Energy Regulatory Commission.

A portion of the funds would also be sourced from the expected partial reimbursement of the Power Sector Assets and Liabilities Management Corp. of Napocor advances to the Bureau of Internal Revenue for the value added tax on the sale of its main power plants amounting to P2.265 billion.

Drilon pointed out that the supplemental budget or any savings derived from it cannot be used by Napocor for the payment of salaries, advances, per diems, representation and transportation expenses and other personal allowances and benefits.