Business World Online
Posted on February 18, 2011 06:43:33 PM
THE NATIONAL Electrification Administration (NEA) has said it did not over-collect amortization from electric cooperative loans as claimed in a House resolution calling for a probe on the issue.
In a statement on Friday, electric cooperative industry regulator denied the claim of excess collections worth P2.1 billion since the amount is within legal bounds as provided for by law.
"NEA has both the authority and legal basis to collect the amount of P2.1 billion from the electric cooperatives considering the provision under Section 60 of Republic Act (RA) 9136 [Electric Power Industry Reform Act], which states that ‘all outstanding financial obligations of the electric cooperatives to NEA and other governmental agencies incurred for the purpose of financing the rural electrification shall be assumed by PSALM (Power Sector Assets and Liabilities Management Corp.),’" the agency said in its statement.
It added the P2.1 billion "collected was applied to interest charged for the loans of electric cooperatives during the period June 27, 2001 until the issuance of provisional authority" that will reduce rates of electric cooperatives as a result freeing up the utilities from loan amortization and the assumption of by PSALM of the obligations.
The Energy Regulatory Commission issued provisional authorities to reduce rates of electric cooperatives from March 4, 2003 to Jan. 9, 2004
The regulator said that while the loans of electric cooperatives were condoned under RA 9136, the law states the electric cooperatives must still pay outstanding obligations.
Aside from handling, electric cooperatives, NEA is also the lead agency for rural electrification.
House Resolution 501 has been filed by Coop-NATCCO party-list Rep. Jose Ping-Ay. -- E. N. J. David
"NEA has both the authority and legal basis to collect the amount of P2.1 billion from the electric cooperatives considering the provision under Section 60 of Republic Act (RA) 9136 [Electric Power Industry Reform Act], which states that ‘all outstanding financial obligations of the electric cooperatives to NEA and other governmental agencies incurred for the purpose of financing the rural electrification shall be assumed by PSALM (Power Sector Assets and Liabilities Management Corp.),’" the agency said in its statement.
It added the P2.1 billion "collected was applied to interest charged for the loans of electric cooperatives during the period June 27, 2001 until the issuance of provisional authority" that will reduce rates of electric cooperatives as a result freeing up the utilities from loan amortization and the assumption of by PSALM of the obligations.
The Energy Regulatory Commission issued provisional authorities to reduce rates of electric cooperatives from March 4, 2003 to Jan. 9, 2004
The regulator said that while the loans of electric cooperatives were condoned under RA 9136, the law states the electric cooperatives must still pay outstanding obligations.
Aside from handling, electric cooperatives, NEA is also the lead agency for rural electrification.
House Resolution 501 has been filed by Coop-NATCCO party-list Rep. Jose Ping-Ay. -- E. N. J. David
No comments:
Post a Comment