‘Power firms, electric co-ops owe PSALM P95.42 billion’

By Jovee Marie de la Cruz - February 20, 2020

https://businessmirror.com.ph/2020/02/20/power-firms-electric-co-ops-owe-psalm-p95-42-billion/

The Power Sector Assets and Liabilities Management Corp. (PSALM) on Wednesday told lawmakers that it has P95.42 billion in overdue receivables from power companies and electric cooperatives.

Lawmakers warned that these uncollected receivables could be passed on to consumers once PSALM’s corporate life expires in 2026.

During a joint hearing by the House Committees on Public Accounts and Good Government, PSALM President and Chief Executive Officer Irene Joy Besido-Garcia said uncollected fees from private corporations and cooperatives include P35.44 billion from Power and Universal Charges, P33.62 billion from Independent Power Producer Administrator (IPPA) and P26.35 billion from litigation, for reconciliation and adjusment as of December 31 last year.

According to Garcia, the total amount private power firms owed the PSALM has reached P33.52 billion, the bulk of which is from the South Premiere Power Corp. (SPPC) amounting to P23.94 billion.

The SPPC is under the IPPA Agreement with PSALM for the 1,200-megawatt (MW) natural gas-fired power plant in Ilijan, Batangas.

Garcia also reported overdue accounts for generation payments under the IPPA agreement from Northern Renewables Generation Corp. at P4.579 billion, FDC Misamis Power Corp. at P2.630 billion, FDC Utilities Inc. at P1.167 billion, Good Friends Hydro Resources Corp. at P1.214 billion and Waterfront Mactan Casino Hotel Inc. at P87 million.

She said PSALM is set to receive P14.9 billion from Manila Electric Co. (Meralco) under litigation, for reconciliation and adjustment payment.

House Committee on Public Accounts Chairman and Anakalusugan Rep. Michael Defensor said the lower chamber would invite representatives from involved private corporations in the next hearing to explain their overdue payments.

“Most of them have not paid yet. They will be called for the next hearing. The government could earn a lot from these from the collection,” said Defensor.

“These overdue accounts should be paid by the power firms. At the end, the public would carry the burden of paying these, not the government,” he added.

PSALM is a government-owned and -controlled corporation that manages all existing debt of National Power, capital lease payments to IPPs, and the outstanding obligations of electric coops to the National Electrification Administration and other government agencies.