DMCI eyes chunk of Napocor’s small power utilities group

Manila Times.net
Published : Tuesday, January 03, 2012 00:00 Written by : Euan Paulo C. Añonuevo


DMCI Power Corp., the power generation arm of the Consunji Group, is keen on bidding for off-grid areas served by state-owned National Power Corp. (Napocor).


Isidro Consunji, DMCI Power chairman, said that the power firm plans to bid for areas under Napocor’s Small Power Utilities Group (SPUG) that will be lined up in the auction block.


“Our focus this year is on SPUG areas. We will bid as much as possible,” he added.


SPUG provides power in remote areas and off-grid islands that are not connected to the country’s main power grid.


The areas served by SPUG mostly have limited markets to attract private power producers. Napocor is also barred from incurring additional debt by the national government. As such, the latter has had to rely on adjustments to the universal charge component of consumers’ electricity bills for the former’s operations.


To help ease the financial strain on the company, Napocor president Froilan Tampinco said that they plan to privatize some of SPUG’s service areas.


There were 14 SPUG areas previously offered for private sector participation, namely, Occidental Mindoro, Oriental Mindoro, Marinduque, Mainland Palawan, Catanduanes, Bantayan, Masbate, Tablas, Romblon, Camotes, Siquijor, Tawi-Tawi, Basila and Sulu.


“Out of the 14, actually our concentration is on 12 areas only. Two areas are relatively successful and that’s Bantayan and Masbate. So we will offer the remaining 12, and our first thrust will be Mindoro and Palawan,” the Napocor official said.


Of these areas, DMCI Power plans to vie for SPUG’s operations in Palawan, Mindoro and Catanduanes.


“Mindoro and Palawan will be [offered] within first quarter. We will do competitive bidding. This time different agencies are working closely together,” Tampinco said.


SPUG’s operations in Catanduanes, Romblon, Tablas and Siquijor, the Napocor official said, will likely follow the Palawan bidding. On the other hand, “the more difficult areas” will be privatized last including Sulu, Tawi-Tawi and Basilan.