NPC sees P65-B net income in 2007
Wednesday, February 21, 2007
By MYRNA M. VELASCO
State-run National Power Corporation (NPC) has projected an income drop to P65 billion this year from a record-high of P90 billion it posted for 2006, which was shored up mainly by foreign exchange gains.
This was the economic forecast presented to journalists by Presidential chief of staff Joey Salceda; but he did not cite specific reasons why the power firm’s profitability will slow down.
It was noted that Salceda’s economic presentation was based on inputs submitted to Malacañang by various economic departments, attached agencies and government-owned and controlled corporations.
NPC has been registering substantial improvement on its balance sheet since 2005, when it registered a net income of P86 billion from a loss of P29 billion in 2004.
It could be gleaned in the state-run power utility’s financial statement though that its operating income suffered a slight drop in 2005 to P21.885 billion from P22.148 billion in 2004.
For 2006, NPC president Cyril C. del Callar noted the company’s operating income improved by P10 billion, based on its unaudited financial statement submitted to the Commission on Audit.
Given the substantial forex gains it has been incurring, NPC is now under pressure to pass this on so that consumers will benefit from these in the form of reduced electricity bills.
Del Callar said an application for rate reduction has already been applied with the Energy Regulatory Commission (ERC) and it would already be up to the regulatory body to calculate how much the forex gains would translate to as reduction in electricity rates.
In a policy statement, President Gloria Macapagal Arroyo noted that electricity rate cuts would be the path that the country must trail so that it can improve its global competitiveness.
"Electric power is the next area of major economic reforms," the President stressed; adding that this is one of the strategies to be undertaken to put the Philippines in the frontline of competitiveness.
Salceda has shown that the country’s competitiveness actually skidded to 43rd rank in 2006 from a better rank of 31st years back.
It must be pointed out that the business sector has long been complaining of the expensive electricity in the country; thus, many of them preferred to locate ventures in other countries.
Most of the reforms laid down for the power industry are still failing at implementation; and compounded by regulatory uncertainties that have been driving out investors.
posted by philpower @ 11:54 AM,
