SMC debt to PSALM swells to P27 B

Published June 14, 2020, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2020/06/14/smc-debt-to-psalm-swells-to-p27-b/

The accounts receivables of state-run Power Sector Assets and Liabilities Management Corporation (PSALM) from South Premiere Power Corporation (SPPC), a subsidiary of San Miguel Corporation (SMC), had swelled to P27.308 billion as of end-December based on the latest audit report issued by the Commission on Audit (COA).

That climbed by more than P5.3 billion from P21.954 billion in the previous year’s audited financial statement of PSALM. SPPC is the independent power producer administrator (IPPA) of the 1,200-megawatt Ilijan gas-fired power facility in Batangas, which is set for turnover to the IPPA on June 26, 2022 on the lapse of its build-operate-transfer (BOT) contract with government and upon resolution of all legal impediments.

Apart from SPPC, PSALM listed additional receivables from two other subsidiaries of SMC – amounting to P220.991 million for San Miguel Energy Corporation (SMEC) which is the IPPA for the 1,200MW Sual coal-fired power plant in Pangasinan; and P134.904 million for Strategic Power Development Corp (SPDC) which is the IPPA for the 345MW San Roque hydropower plant in Pangasinan.

On the SPPC receivables, PSALM indicated that P21.190 billion had been past due for more than 60 days; P187.174 million had been due in the past 30 days; while P5.930 billion had been booked as receivables but not considered yet as past due.

PSALM’s receivables from the SMC subsidiary firm SPPC are currently pending in the courts for resolution, with SMC President Ramon S. Ang enjoining the government-owned firm to honor the terms of the privatization contract that the parties had agreed and underwritten in the IPPA deal.

For all receivables with its IPPAs, the audited PSALM books stated that this already surged to P32.504 billion as of end last year versus a leaner P27.244 billion in 2018.

Two Aboitiz Power subsidiary-firms are also in the roll – including P546.484 million receivables from its Therma Luzon Inc. for the Pagbilao plant; and Aboitiz Energy Solutions Inc. (AESI) for P497,475.00 on the Unified Leyte geothermal plant. For the Pagbilao plant, P473.285 million had been past due for more than 60 days; while P73.199 million is not past due but already booked as receivables.

The other IPPA-power generation firms with dues to PSALM include Good Friends Hydro Resources Corporation for P1.064 billion; FDC Misamis Power Corporation for P1.027 billion; Northern Renewable Energy Corporation for P996.837 million;

FDC Utilities Inc. for P775.136 million; Unified Leyte Geothermal Energy Inc. for P333.920 million; Vivant Energy Corporation for P1.145 million; and Waterfront Mactan Casino Hotel Inc. for P95.264 million.

Beyond the amounts due from IPPAs, PSALM logged aggregate receivables of P124.845 billion by end-2019 from various customers as well as on collections of universal charges (UCs) that are yet to be remitted to company. That was higher by P8.38 billion from P116.464 billion worth of receivables in 2018.

Of the total for 2019, P98.794 billion has been booked as current receivables; while P26.050 billion had been classified as non-current.

These receivables represent payments to be collected from customers and contractual counter-parties at P53.246 billion (to include IPPAs and distribution utilities/electric cooperatives); generation payments of P32.504 billion; then universal charges for stranded debts and stranded contract costs totaling P31.508 billion; and interest charges of P7.568 billion.