However, the projected deficit is far removed from the P607 million shortfall reported in the 2010/11 financial year and the P563.6 million recorded for 2009/10.For the current financial year that ends next Friday, the corporation's financial woes were rescued by a P454 million subsidy paid by government in lieu of a substantive tariff increase.According to figures made available this week, the average 22.5 percent increase last June also helped the BPC's revenues rise 69 percent to a projected P2.7 billion for 2011/12. However, costlier imports of power, higher purchases of emergency power, as well as increased staff and electricity generation costs are projected at P2.74 billion, resulting in the P87.3 million shortfall.
For the 2012/13 financial year, BPC's financial position will be helped by a P500 million subsidy which government is expected to avail to the corporation at the end of the current financial year.The glad tidings, however, have already been dimmed as BPC executives told Business Week that going into 2012, the corporation's precarious financial position would worsen, with operating expenses forecast to top P3.1 billion. Chief Executive Officer Jacob Raleru explained that the higher expenses would be associated with the introduction of Morupule B Power Station where the first 150MW unit is due within weeks.
