Pantabangan power disconnected over P80-million in bills

Manila Standard Today
By Alena Mae S. Flores | Posted on July 25, 2012 | 12:01am

First Gen Hydro Power Corp., owner-operator of the 132 megawatt Pantabangan-Masiway hydro complex, said it is looking for ways to source electricity to public schools in Nueva Ecija after it cut off supply on Monday to the local power distribution firm.

First Gen Hydro said Pantabangan Municipal Electric Services had not paid its bills amounting to more than P80 million.

The company  said it is constrained to take such measure after PAMES again  failed to honor its obligations under the terms of a March 16, 2012 restructuring agreement to settle its accounts dating to 2008.

“We have continuously expressed willingness to assist PAMES in looking for alternative power supply. We are also looking at way to provide temporary power to some public schools in Pantabangan, in the meantime,” FG Hydro vice president Dennis Gonzales said.

First Gen Hydro said it has continuously been serving PAMES since December 2006 despite the expiry of the power supply agreement in December 2008 due to its concern for the welfare of Pantabangan residents and other PAMES consumers which is acknowldged by the municipal government.

After efforts to collect since 2007 remained unheeded, the company sent a disconnection notice to PAMES last Feb. 8 which was not served after Mayor Romeo Borja Sr. Appealed for an extension.

“We have also accommodated them previously by way of an offsetting agreement, their arrears versus our local taxes. But they reneged on that,” Gonzales said.

He said First Gen Hydro also entered into a restructuring agreement under  payment schedules which the provincial government proposed.

“But when they failed to perform their obligations under the restructuring agreement, we were constrained to act decisively,” the company said. “We are duty bound to ensure the continuing viability of our operations for the benefit not only our stakeholders but other paying customers.”

First Gen Hydro acquired the Pantabangan and Masiway plants from the government in 2006.     source