DOE tells power firms to defer collection of payments for one month

Published March 21, 2020, 12:02 AM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/21/doe-tells-power-firms-to-defer-collection-of-payments-for-one-month/

Energy Secretary Alfonso G. Cusi has directed all players in the power industry to defer collection of financial obligations of their customers or off-takers (capacity purchases) in view of the month-long lockdown enforced for Metro Manila and the rest of Luzon.

The energy chief issued a memorandum on this plea to all public and private firms in the power sector given the ongoing community quarantine that will last until April 14 in Metro Manila.

In Cusi’s directive, he instructed fuel and energy resource suppliers to generation companies nationwide “to extend the payment of obligations for 30 days from April 14, 2020.”

He said that such shall cover payments to coal suppliers of electric generating plants, as well as those that have been supplying diesel, bunker-C and lubricants to power facilities.

The same order applies to resource suppliers, such as steam for geothermal plants; and natural gas for those that have supply off-take from the Malampaya gas production facility.

That rule on extension of payment, he indicated, shall also be applied to state-run firms Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation, National Transmission Corporation and the Independent Electricity Market Corporation of the Philippines.

Conversely, Cusi has ordered the immediate remittance of the financial benefits to local government units (LGUs) hosting power projects and energy resource developments so they could use the funds to help their constituents as the country copes with the health crisis currently pummeling it.

He said an order on the fund release has already been issued recently – and the money to be funneled just needs to be sourced from the trust account which is now ready.

Cusi similarly sought the imprimatur of the LGU-hosts of energy facilities “to extend the payment deadline for applicable local taxes, fees or charges,” and for the lessors of land-sites for energy facilities “to extend payment of rentals for 30 days from April 14, 2020.”

“Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen,” the energy chief stressed.

He qualified that the new memorandum issued on the payment deferment “is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time.”

Energy Secretary Alfonso G. Cusi has directed all players in the power industry to defer collection of financial obligations of their customers or off-takers (capacity purchases) in view of the month-long lockdown enforced for Metro Manila and the rest of Luzon.

The energy chief issued a memorandum on this plea to all public and private firms in the power sector given the ongoing community quarantine that will last until April 14 in Metro Manila.

In Cusi’s directive, he instructed fuel and energy resource suppliers to generation companies nationwide “to extend the payment of obligations for 30 days from April 14, 2020.”

He said that such shall cover payments to coal suppliers of electric generating plants, as well as those that have been supplying diesel, bunker-C and lubricants to power facilities.

The same order applies to resource suppliers, such as steam for geothermal plants; and natural gas for those that have supply off-take from the Malampaya gas production facility.

That rule on extension of payment, he indicated, shall also be applied to state-run firms Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation, National Transmission Corporation and the Independent Electricity Market Corporation of the Philippines.

Conversely, Cusi has ordered the immediate remittance of the financial benefits to local government units (LGUs) hosting power projects and energy resource developments so they could use the funds to help their constituents as the country copes with the health crisis currently pummeling it.

He said an order on the fund release has already been issued recently – and the money to be funneled just needs to be sourced from the trust account which is now ready.

Cusi similarly sought the imprimatur of the LGU-hosts of energy facilities “to extend the payment deadline for applicable local taxes, fees or charges,” and for the lessors of land-sites for energy facilities “to extend payment of rentals for 30 days from April 14, 2020.”

“Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen,” the energy chief stressed.

He qualified that the new memorandum issued on the payment deferment “is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time.”