DMCI Power’s Antonio Gatdula, Jr. sets sights on lowering off-grid power costs
By Sheldeen Joy Talavera, Reporter
ANTONIO E. Gatdula, Jr., president of off-grid power generator DMCI Power Corp., prioritizes reducing power generation costs and strategically incorporating renewable energy sources into the company’s portfolio.
“Aside from the fact that we have to provide reliable, quality, stable supply of power, I think most importantly… we have to bring down the cost of power in the off-grid,” Mr. Gatdula said in an interview with BusinessWorld.
“The effect is not just limited to the area where we are operating; it extends to the entire country. So, if we bring down the cost of power in the off-grid, the UCME (Universal Charge for Missionary Electrification) rate that consumers are paying will decrease,” he added.
To further reduce costs, he mentioned plans to integrate renewable energy into the company’s portfolio, noting that it is “much cheaper than bunker and diesel.”
Mr. Gatdula said the company aims to maintain DMCI Power’s leadership position as “the largest privately owned power provider in the off-grid sector.”
DMCI Power currently operates and maintains bunker-fired power plants, diesel generating sets, and thermal power plants in Masbate, Palawan, and Oriental Mindoro.
PROFESSIONAL JOURNEY
Mr. Gatdula, a certified public accountant, began his professional journey as an audit associate in 2000 and an instructor at San Beda College.
“It is really my passion to teach as I feel relaxed every time I share what I know… Teaching is a two-way stream, right? You teach and then at the same time you learn,” he said.
He entered the energy industry in 2003, starting at the Energy Regulatory Commission before moving to the state-led Power Sector Assets and Liabilities Management Corp.
In 2008, Mr. Gatdula joined DMCI Power as a marketing and business development officer. Recognized for his expertise in accounting and finance, he was later promoted to controller and subsequently assumed the role of chief finance officer. Approximately seven years later, he was appointed as the company’s chief operating officer.
He assumed the presidency of DMCI Power in 2022 amidst unprecedentedly high fuel prices, which posed challenges for the company given its reliance on bunker and diesel power plants.
Under the Electric Power Industry Reform Act of 2001, UCME is collected from electricity end users to fund electrification programs of the National Power Corp.
“Because of the elevated price of fuel, the amount of subsidy that they collected is not enough to settle the subsidy entitlement of generators in the off-grid. As a result, there had been a delay in the payment of subsidy,” he said.
During this period, Mr. Gatdula emphasized the challenge of meeting financial obligations to banks and fuel suppliers to prevent disruptions in the areas served by the company.
He noted that suppliers understood the situation, and the company’s banks extended credit terms and short-term loans to support its operational needs.
“I think teamwork is really important…That is why I am so happy that I have a team that is dedicated and share the same passion, the same level of commitment to deliver,” Mr. Gatdula said.
He described his leadership approach as focused on empowering employees to achieve their full potential, drawing on his passion for teaching.
Entering the energy industry at 23, Mr. Gatdula gained insights into the critical role of collaboration between government and private sectors in addressing energy sector challenges.
“The power industry is complex due to its diverse stakeholders. It’s crucial for government and private sectors to collaborate effectively to enhance the quality of life for every Filipino,” he said.
For 2024, DMCI Power will be spending its “biggest annual capital expenditure,” which amounts to about P2 billion, on various energy projects.
One of these projects involves the construction of a 12-megawatt wind farm on Semirara Island, Antique province, scheduled to commence operations in the first quarter of 2025. Mr. Gatdula noted that wind turbine testing is slated for December.
The company anticipates higher energy sales volume this year, driven by increased demand and reliable operational performance.
“I can say that it should be a lot higher than last year because, (in) our experience, for the first five months of this year, it has been a lot higher than last year; (we’ve seen) double-digit growth in volume,” Mr. Gatdula said.