ERC orders Napocor to pay SCPC P476.7M

Business Mirror
25 Aug 2014 Written by Lenie Lectura

THE Energy Regulatory Commission (ERC) has issued a writ of execution against the National Power Corp. (Napocor)/Power Sector Assets and Liabilities Management Corp. (PSALM) for the payment of P476.7 million to Sem-Calaca Power Corp. (SCPC).

In a 13-page order, the ERC found the motion filed by SCPC “impressed with merit,” considering that the amount involved had already been reconciled and agreed upon by the parties.

“It is clear that garnishment can proceed to implement the commission’s decision” dated July 6, 2011, “and order” issued on February 13, 2012, the ERC said.

“It behooves upon the commission to bolster its authority to enforce its decisions, orders and judgments as enunciated by the Supreme Court,” the order said.

The 2011 and 2012 ERC orders directed PSALM, which took over the privatization of Napocor assets, to remit the principal amount of P476,703,077.96 in favor of SCPC, with interest at the rate of 6 percent per annum computed from August 4, 2010, the date of extrajudicial demand, until actual date of payment, which as of December 2013 already amounted to P95,210,011.82, and the amount of value-added tax as collected by PSALM from Meralco.

SCPC argued that the 30-day period given to PSALM within which to return the reconciled amount plus interest had already lapsed on April 14, 2012. This prompted SCPC to seek for a writ of execution before the ERC. But PSALM argued that only the Commission on Audit (CoA) has primary jurisdiction in cases of monetary claims due owing to the government. Thus, PSALM asserted that the ERC should deny the SCPC’s motion, since it should have filed its money claims with the CoA.

“For such reasons, SCPC’s motion must be denied outright,” the state firm said. The ERC, however, said the mere fact that both parties have already reconciled and agreed on the specific amounts due to SCPC, including interests, “it is clear that garnishment can proceed.” Still, the ERC wants both parties to discuss the details of the implementation of the writ of execution. “Accordingly, a clarificatory conference to discuss the details of execution is hereby set on September 3…. The senior officers of PSALM and SCPC and their respective counsels are hereby directed to attend the said conference,” the ERC said. source