The Heat Rate Improvement Program (HRIP) of the National Power Corporation is an on-going project expected to sustain the operation of the old thermal, coal and diesel plants, enhance their operational efficiency and provide sufficient power reserves. This likewise reduces the amount of fuel consumed and minimizes the air pollutants emitted by the generating plants. In compliance with the rate standard set by the ERB, the oil-fired and coal-fired power plants will maintain heat rates of 10,850 Btu/kWh and 9,773 Btu/kWh, respectively. With the pending restructuring and privatization of NPC, generation companies are expected to pursue this program to enhance their competitive edge in a privatized industry. This project will cover a total of 342 power plants for the next 9 years. Towards the end of the planning period, the accumulated energy savings are foreseen to reach 3 MMBFOE per year with a one-time investment cost of P1,946 million.