KUALA LUMPUR, Malaysia – The National Power Corporation (NPC) warned of power supply disruptions in offgrid areas should it fail to secure funding of an additional P11.5 billion for 2025.
During the Enlit Asia 2024 energy conference, NPC president and CEO Fernando Martin Roxas highlighted the critical need for these funds to procure diesel fuel, which is essential for maintaining power supply in isolated regions.
Roxas explained, “For 2025, we need P11.5 billion. Otherwise, each billion of deficit would result in about 2.1 hours of no power.” The warning comes as NPC manages 272 Small Power Utilities Group (SPUG) power plants across the country, serving 222 areas in 192 municipalities.
According to Roxas, the NPC is exploring options to secure the necessary funding, including loans and adjustments to power rates. However, Roxas emphasized that Energy Regulatory Commission (ERC) approval for rate increases is crucial. “If ERC would not allow us to collect, we have no choice. Otherwise, we will also curtail supply, and that’s bad on an election year,” he said.
Roxas has already communicated the urgency of the situation to the Department of Energy (DOE), stressing that without timely approval, NPC could face operational funding shortages as early as March 2025. This situation is compounded by the ERC’s current leadership transition, which may delay decision-making.
NPC’s SPUG plants primarily operate on diesel generators and provide power to remote islands and communities not connected to the main transmission grid, including provinces such as Palawan, Catanduanes, and Mindoro. As the organization prepares for potential funding hurdles, the focus remains on ensuring reliable energy access for underserved populations.
