The National Power Corp. (NPC) has sought approval of a P10 billion from the Land Bank of the Philippines whose proceeds will finance the fuel requirements of SPUGs, or the small power utilities group units, operating in off-grid areas.
The loan is meant to forestall the rationing of power in communities where the SPUGs are hard pressed to continue their operations in the face on non-payment for their services.
Fernando Martin Roxas, NPC president and chief executive officer, said the amount is on top of the P5 billion approved earlier.
As a result, Roxas ruled out rotational power interruptions in SPUG-serviced areas that he warned about last year in the absence of financing.
“It will no longer happen because we’ve been able to borrow P5 billion, and we will add P10 billio more,” he told reporters.
He acknowledged the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has yet to approve of the loan seen finally drawn in August or September this year.
SPUG power plants mainly serve island communities not connected to the main transmission grid, their operations funded by revenue from power sales and from the universal charge collected from power consumers.
The NPC oversees 281 such plants in 189 municipalities across 35 provinces that run on diesel-fired generators.
The NPC is similarly planning to run at least 25 percent of SPUGs with renewable energy over the next two years.
Roxas had said the ultimate goal is also to power SPUG plants 100 percent renewable energy before 2030.
