Napocor, PSALM ordered to pay Consunji Group P476.7m

Manila Standard Today
By Alena Mae S. Flores | Aug. 26, 2014 at 12:01am

The Energy Regulatory Commission has ordered National Power Corp. and Power Sector Assets and Liabilities Management Corp. to pay the P476.7 million worth of receivables of Sem-Calaca Power Corp. of the Consunji Group.

ERC said in a ruling the amount included an interest of 6 percent a year computed from August 2010 until the date of actual payment, which as of end-December last year amounted to P95.2 million, and the value-added tax collected by PSALM from Manila Electric Co.

“The commission finds the motion filed by Sem-Calaca impressed with merit,” the regulator said.

The amount covers Sem-Calaca’s receivables from the transition supply contract between Meralco and Napocor and direct sales to Napocor.

Sem-Calaca owns the 600-megawatt Calaca coal-fired power plant in Batangas which it acquired from the government while PSALM manages the assets and liabilities of Napocor.

Sem-Calaca on December 4, 2013 sought an issuance of writ of execution pursuant on the ERC decision in July 2011 as amended by February 2012 ruling directing PSALM to remit the amount of P467.7 million.

ERC said the ruling resolved an issue on whether the funds of PSALM could be subject to execution or garnishment.

The regulator ruled that the funds of PSALM “can be used to satisfy its judgement award and be the subject of garnishment as in the case of the NPC Drivers and Mechanics Association” against Napocor. The Supreme Court has ruled that PSALM’s funds can be the subject of garnishment. source