THE National Power Corp. (Napocor) has sought regulatory approval to avail and use around P335.35 million from a component of the universal charge collected from consumers for its environmental function to rehabilitate watersheds.
In its application filed with the Energy Regulatory Commission (ERC), the state-led firm said its environmental projects for 2022 require the budget to address “uncontrolled deforestation” in watershed areas.
“For the past 20 years (2002-2022), [Napocor] continues to embark on nonstop greening initiatives in various watershed areas that gained acceptance and encouraged cooperation from stakeholders,” the government-owned and controlled corporation said.
Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), Napocor is entitled to the environmental charge collected from electricity users equivalent to one-fourth of one centavo per kilowatt-hour (kWh) of electricity sales or P0.0025 per kWh.
The environmental charge is intended solely for watershed rehabilitation and management, which is a function of Napocor under existing arrangements. ERC is required to file with the ERC to avail of the funds collected from consumers.
In its filing docketed at the ERC on March 14, Napocor said it was granted in 1987 through an executive order complete jurisdiction, control and jurisdiction over five watershed areas surrounding the reservoir of plants or projects it constructed.
These areas are Upper Agno watershed reservation, Angat watershed reservation, Caliraya Lumot watershed reservation, Makiling-Banahaw geothermal reservation, Buhi-Barit watershed, and Tiwi geothermal reservation.
Aside from the six areas, Napocor also listed other areas under its 2022 rehabilitation program called “Plan 18,” namely: San Roque watershed (Lower Agno) and Lake Lanao-Pulangi watershed.
The universal charge is imposed for the recovery of the stranded debts, stranded contract costs of Napocor and stranded contract costs of eligible contracts of distribution utilities.
Aside from managing watersheds and water resources, the corporation is also mandated to provide electricity to rural areas, and to optimize the use of other power generating assets.