Published
By Myrna M. Velasco
State-run Power Sector
Assets and Liabilities Management Corporation (PSALM) logged record receivables
of P41.58 billion, the bulk of which at P24.92 billion have been classified as
delinquent accounts from power customers, particularly problematic electric
cooperatives.
As of end-2018, PSALM
indicated that 83 percent of the receivables cover the accounts of problematic
electric cooperatives, namely the Albay Electric Cooperative (ALECO);
Maguindanao Electric Cooperative, Inc. (MAGELCO); Lanao del Sur Electric
Cooperative, Inc. (LASURECO); Pampanga III Electric Cooperative (PELCO); and
the Public Utilities Department (PUD) of Olongapo.
“High receivable from
delinquent power customer is around P24.92 billion,” the PSALM report has
stipulated. Other than the delinquent fraction of the receivables, the company
noted that 20 percent is dormant or closed accounts; 5 percent is for
negotiation; 3 percent is due for reconciliation; 3 percent had been
restructured accounts; 3 percent is current; and 2 percent had been embroiled
in legal cases.
The scale of the company’s receivables had been identified among the factors
weighing down on its overall financial stature and risk exposure; hence, this
is a key area that it needs to improve on.
So far, the company
said it already issued final demand letters to customers with payment
delinquencies; while at the same time, pursuing restructuring or special
payment arrangements with the other accounts.
The government-run
company said one of the measures it instituted had been “prepayment of restructured
balance through loan assistance from banks that offer lower interests compared
to the rate of interest currently being imposed by PSALM.”
With its total
liabilities still staggering at P449.19 billion as of end last year, PSALM
indicated that it may still “incur losses due to adverse fluctuations in the
market rates and prices.”
The company similarly
highlighted its foreign currency risks given that 73.5-percent of its financial
obligations are denominated in US dollars; and 6.38-percent are in Japanese
yen.
“Around 78-percent of PSALM’s financial obligations, which includes IPP
(independent power producer) obligations, is exposed to forex fluctuations with
estimated sensitivity of almost P6.7 billion for every one-peso movement in
forex,” the state-run firm stressed.
It further emphasized
that 41.25-percent or P184 billion of PSALM’s outstanding financial obligations
“are tied with fixed interest rates from loans/bonds”; while 18.28-percent or
P82 billion are with floating interest rates.
The firm similarly
cited liquidity risk due to “mismatch between debt maturities and privatization
proceeds,” thus, this has been prompting it to fast track the privatization of
remaining power assets and supply contracts that are still under its charge.
PSALM’s corporate life
is just until 2026, thus, it has been given a strict mandate to liquidate the
company’s remaining liabilities either through privatization of remaining
assets or the proposed utilization of the Malampaya fund to retire its debts
via the support of a legislative measure.
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