Napocor lays down supply, profit goals

State-run National Power Corp. (Napocor) has laid down an eight-point workplan, which targets to secure the stability of power supply within the remote, off-grid areas and, at the same time, bring the cash-strapped agency back to profitability.

In a statement, Napocor president Froilan A. Tampinco explained that the workplan for 2012 to 2014 outlined eight key result areas (KRAs), which will provide focus for the company’s projects and programs.

“We have formulated these KRAs in the hope that they will help us set our path for the future and put into a more accurate perspective the new roles that NPC will play in the power industry, and more significantly, in the country,” Tampinco said.

Over the next three years, Napocor will move to computerize its financial system and instill improvements in the corporation’s reportorial and feedback system.

The new system will replace Napocor’s outmoded, in-house-developed financial system, and will include the completion of a new chart of accounts and a revised accounting manual.

Another thrust would be to develop a more efficient Fuel Inventory and Monitoring System as well as a Fuel Contract Monitoring System to ensure that the power plants operated by Napocor’s small power utilities group (SPUG) in the remote and off-grid areas will have uninterrupted fuel supply.

The group is likewise moving to improve its collection efficiency, in particular, the accounts receivables under the SPUG, as well as from distribution utilities and local government units. This will help shore up funds that can be used for fuel procurement.

Last year many of the SPUG areas had to endure rotating brownouts due to lack of fuel. Financially constrained, Napocor was unable to pay its fuel suppliers then.

Also being pushed under the new workplan was the privatization of the “viable” SPUG areas, starting off with Palawan and Mindoro.

Privatization in this case meant that prospective investors will be allowed to build, own and operate generation facilities to supply electricity to “missionary,” or far-flung, areas where the government-run SPUG operates its own power facilities.

Napocor will push for the implementation of social and environmental measures to maximize the potential of the Agus 2 hydroelectric power plant through the additional downstream reservoir capacity at the Balo-i Plains.

It likewise targets to formulate a more updated dam safety program, to ensure the safe operations of Napocor’s dams and reservoirs, and to enhance customer satisfaction during the normal operations of these facilities.