STATE-OWNED National Power Corporation (Napocor) has posted a net income of P1.6 billion in 2016 as stipulated in its financial report submitted to the Commission on Audit (COA).
Napocor posted a positive net income since 2012 and realized a complete financial turnaround in 2015 with P4.9 billion net income with P2.5 billion positive retained earnings which is a reversal of its P2.78 billion net loss in 2010.
"The good financial position of the corporation for 2016 is attributed to the corporation's fiscal prudence and good governance practices," said Napocor President Ma. Gladys Cruz-Sta. Rita.
"The restructured tariff recovery approach, more proactive recovery of the Universal Charge for Missionary Electrification (UCME) and sustained high collection efficiency also helped in maintaining our good financial standing," she added.
In late 2014, Napocor has appealed before the Energy Regulatory Commission (ERC) for a restructured tariff recovery approach to bring the gap between cost and revenue closer. The ERC has provisionally approved the P0.1163 per kilowatt hour basic UCME from P0.0454, though the total UCME remains at the same level of P0.1561 per kilowatt hour.
The provisionally approved tariff gave the corporation a greater fiscal muscle, Sta. Rita said, adding that it allowed Napocor to fund most of the expenses using current revenues.
Moreover, the sustained collection efficiency also contributed the corporation’s finances. Its collection efficiency for Luzon, Visayas and Mindanao excluding Basilan, Sulu and Tawi-Tawi is at 98.38 percent which is used to be at 85 percent in 2012.
"We owe our sound collection efficiency to the dialogues we have been organizing with our customers since the past three years. These dialogues paved the way for a better and faster communication line and better services we give to our customers," Sta. Rita said. (SDR/SunStar Philippines)